Remittances from Jordanian workers abroad have been affected by the global economic repercussions and the drop in oil prices, as many of them have returned to the country, in addition to the impact of the Corona pandemic on the growth of these remittances.
The International Monetary Fund said in a statement on Wednesday that it had reached an expert-level agreement with Jordan under the Extended Facility program, which would bring total allocations since the start of the program in 2020 to around 1 $.75 billion.
The fund said Jordan needs to accelerate the pace of structural economic reforms to push growth beyond the two to three percent it has averaged in recent years so the country can provide more opportunities. to reduce high unemployment rates.
“While unemployment rates remain high, particularly among youth and women, structural reforms are still needed to achieve strong and inclusive growth and job creation,” Ron Van Rooden, a head of the International Monetary Fund.
He added that there was a need to stimulate growth to help create jobs to reduce the unemployment rate, which currently stands at around 22.9%.
He pointed out that expectations of reaching a growth rate of 2.6% this year are still not enough to improve living standards in a country of about 11 million people which is experiencing an annual population growth of about 2%.
Following a visit by an IMF team to carry out the sixth review of the country’s program supported by the Fund, the official said that Jordan is steadily on track, with all major quantitative targets of the program met. achieved thanks to a prudent monetary and financial policy. tax policies.
“Despite difficult global and regional conditions, Jordan has managed to maintain macroeconomic stability,” he added.
He added that Jordan’s macroeconomic stability helped it secure better interest rates in capital markets compared to other countries when it issued international bonds last month worth $1.25 billion.
“We consider Jordan a success story because it has consistently pursued prudent macroeconomic policy, fiscal policy and monetary policy,” he said.
Finance Minister Mohammed Al-Ississ said the IMF-backed four-year programme, which is due to end next year, has helped maintain economic stability in a difficult global environment.
Van Roden said inflation is on track to decline to 2.7% in 2023 from 3.8% in previous expectations, thanks to tight monetary policy that has helped curb global inflationary pressures.
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