Jordan's economy set to see 3.5% growth this year

Remittances to drive economic expansion in 2013, according to Central Bank governor
Jordan's economy set to see 3.5% growth this year
Flag of Jordan
By Reuters
Sun 26 May 2013 09:06 AM

Jordan's economy is expected to grow around 3.5 percent this year driven by remittances, higher domestic consumption and some pickup in construction activity, the kingdom's Central Bank governor said on Saturday.

Ziad Fariz told Reuters on the sidelines of a World Economic Forum (WEF) conference on the Middle East that the latest estimate, compared to 2.7 percent growth posted last year depended on several factors, including the extent of the impact of a large Syrian refugee influx on the aid dependent economy that would only become clearer by year-end.

Jordan's economy, which imports almost all its energy and commodity needs, has suffered from Arab Spring uprisings in the region. Tourism receipts, remittances from Jordanian workers abroad and investment inflows have been hit.

The International Monetary Fund (IMF) said earlier this year it expects the economy to expand above 3 percent in 2013, reflecting an increase in government capital spending, a recovery in exports and higher domestic consumption.

Fariz said inflation was also expected to ease slightly to around 5 percent this year from an higher 6 percent estimate with lower food prices. It stood at 4.5 pct last year.

Other signs of recovery include foreign reserves which have been boosted by at least $1.5bn of Gulf money and greater confidence in the local economy by investors, officials say.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.