The European Bank for Reconstruction and Development (EBRD) has said that growth in Jordan is expected to remain unchanged at 2.5 per cent in 2023 as global headwinds linger and tight monetary conditions weigh on private investment. According to the EBRD’s latest Regional Economic Prospects (REP) report issued on Tuesday, the bank indicated that medium-term growth will depend on the successful implementation of the government’s “economic modernization vision” to attract foreign direct investment. In 2024, stronger structural reform momentum, more accommodative monetary policy and recovering trade flows should support growth of 2.5 per cent once again, the report noted. Furthermore, the report indicated the main risks to the outlook include the erosion of competitiveness stemming from an overvalued exchange rate, potential disruptions to global trade, regional instability and the delayed implementation of structural reforms. At the regional level, the Bank expected a slight pick-up in gross domestic product (GDP) growth to 3.6 per cent in 2023 from 3.1 per cent in 2022 as economies across the southern and eastern Mediterranean (SEMED) region adapt to the impact of the war on Ukraine, the agricultural sector rebounds and reforms progress. However, the challenging global inflation outlook and political uncertainty remain downside risks. The recovery is expected to gather pace in 2024, with average GDP growth of more than 4 per cent, as reforms advance in all of the region’s economies.

Source: Jordan News Agency