Amman: The World Bank predicted that Jordan’s economy will rise by 2.6 percent in 2023, up from 0.2 percent, which it predicted in June.

The bank’s projections for the Jordanian economy’s growth rate this year were lower by 0.1 percent in its Global Economic Prospects report, which was released Tuesday. The economy is expected to rebound to a growth rate of 2.6 in 2025.

According to the Jordanian government’s projected budget for 2024, the local economy will grow by 2.6 percent this year.

Jordan’s GDP increased by 2.7 percent at constant market prices in the third quarter of this year compared to the same period last year, according to a report released by the Department of Statistics (DoS).

According to the bank’s report, global growth is likely to drop to 2.4 percent in 2024, reflecting the delayed and ongoing consequences of tight monetary policies aimed at reining in decades-long high inflation, restrictive credit conditions, and sluggish global trade and investment.

The report added that the future
prospects of emerging markets and developing economies, which have significant flaws, remain uncertain as debt and finance costs rise.

The bank noted that the latest Middle Eastern crisis, “the Israeli aggression against the Gaza Strip,” which came on top of the Ukrainian war, intensified geopolitical risks.

According to the report, the escalation of the conflict could result in higher oil costs, with larger implications for global activity and inflation.

Other risks include financial pressures from increasing real interest rates, prolonged inflation, slower-than-expected growth in China, increased trade fragmentation, and climate-related calamities.

Regarding the bank’s Middle East projections, the report stated that the conflict has exacerbated uncertainties about the region’s growth prospects.

Assuming the conflict does not escalate, the Middle East and North Africa region’s growth rate is predicted to accelerate to 3.5 percent in 2024 and 2025.

The Gulf Cooperation Council countries’ growth rates ar
e predicted to rise to 3.6 percent in 2024 and 3.8 percent in 2025. In oil-importing countries, growth is predicted to accelerate to 3.2 percent this year and 3.7 percent by 2025.

According to the bank, the conflict will likely exacerbate inflation, restrict private sector activity, and increase pressure on foreign transaction accounts due to a drop in tourism revenues and remittances from Egyptians abroad, just as it will have a negative impact on Jordan’s tourism sector.

Source: Jordan News Agency