IMF applauds Jordan’s progress on economic reforms

Worldwide Financial Fund brand is seen exterior the headquarters constructing in the course of the IMF/World Financial institution spring assembly in Washington, U.S., April 20, 2018. REUTERS/Yuri Gripas

AMMAN, Could 24 (Reuters) – The Worldwide Financial Fund stated on Wednesday that Jordan has made robust progress on main financial reforms to spur progress regardless of larger gasoline and grain costs ensuing from the Ukraine battle.

The IMF’s government board will meet on the finish of June to think about the fourth assessment of an authentic $1.3 billion Prolonged Fund Facility programme begun in March 2020 and expanded a number of occasions by at the very least $1 billion to assist the nation’s restoration from the COVID-19 pandemic and keep its macro-economic stability.

Ali Abbas, who headed an IMF mission that concluded a workers settlement on the fourth assessment of the programme, stated it is suggested that Jordan obtain an additional $165 million, elevating the funding disbursed this yr to $550 million.

The IMF’s government board is more likely to approve the advice.

“We’ve been very inspired with Jordan’s efficiency each on the quantitative facet and the structural reform facet. We stand totally with Jordan because it embarks on its subsequent part,” Abbas stated.

Jordan has met many of the fiscal and financial targets for the reason that IMF programme started in March 2020, closing tax loopholes and widening the tax base and sustaining wholesome overseas forex reserves that can assist act as a buffer, he added.

An unprecedented clamp-down on tax evasion has pushed the dominion’s home revenues past IMF targets for the primary time in a few years.

“Jordan’s reform momentum has been established. What is required is that it must be maintained and accelerated over the approaching years,” Abbas stated in a information briefing.

Jordan is predicted to satisfy a 3.4% of GDP main deficit goal this yr, he added.

The IMF official stated the oil importing nation had partially mitigated the impression of upper gasoline and commodities costs with long-term vitality offers and a wholesome stockpile of wheat bought earlier than the Ukraine disaster.

Each a rebound in tourism, remittances and better exports of fertiliser even have helped cushion the financial system.

Inflation was anticipated to rise to three.8% this yr, in comparison with a earlier forecast of two.8%, Abbas stated.

“Total, Jordan has contained inflation significantly better than different international locations,” he stated.

The IMF has barely downgraded its financial progress forecast for Jordan this yr to 2.4% from 2.7%. Greater progress is seen as key to easing the nation’s excessive unemployment, which stands at round 23%.

Progress ought to be within the “3%-4% vary if the nation needs to uplift itself to a extra affluent place,” Abbas stated.

Reporting by Suleiman Al-Khalidi; Enhancing by Paul Simao

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