Jordan’s economic growth is forecast to edge up to 2.5% by 2020 after suffering a slowdown by 0.3% in the past two years, according to the 2018 Global Economic Prospects report released by the World Bank on Tuesday.
The study, titled “Broad-based upturn, but for how long?”, cites Jordan among the many commodity importers in Europe, Central Asia and the Middle East and North Africa region which have enjoyed positive trade and financial spillovers from strengthening activity in the eurozone and the recovery in Russia, Reuters reported.
“A stronger-than-expected economic recovery in the euroland would provide an important support to growth in the MENA region,” the report said, noting that several countries in the region including Jordan are “dependent on remittances and foreign direct investment”.
“The stability in the eurozone will be reflected in Jordan both in terms of aid and new investments,” economist Wajdi Makhamreh told The Jordan Times, highlighting “the facilities that Jordan is gaining lately regarding exports to the European Union”.
In addition, the study highlighted the measures taken by Jordan amongst other developing countries in order to avoid energy subsidies reemerging if oil prices rebound, with automatic pricing mechanisms or full energy price liberalization taking place in several nations.
“Jordan is now focusing on renewable energies and that will soon start cutting some costs,” Makhamreh said, stressing that “the economic plan announced last year is starting to show positive results”.
The prospects are also positive from the regional perspective, with economic growth in the MENA region expected to accelerate to 3.2% in 2019 given a moderation of the geopolitical tensions and a modest rise in oil prices.
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