IMF expects Jordan’s economy to gain momentum in coming years

The International Monetary Fund (IMF) expects Jordan’s economy to grow by 3 per cent this year. The IMF expected economic growth in the Kingdom to accelerate over the coming years, projecting the gross domestic product (GDP) to expand by 3.5 per cent in 2013 and 4.5 per cent in 2017. Jordan’s economy expanded by 3 per cent during the first half of this year, according to official figures. On global economy, the IMF said the slowdown is worsening, cutting its growth forecast for the second time since April and warning the US and European policy makers that failure to fix their economic ills would prolong the slump. In its latest World Economic Outlook report, released Tuesday during a press conference held ahead of its annual meeting that will take place in Tokyo later this week, the international financial organisation indicated that inflation this year is forecast to remain around 4.5 per cent. For 2013, the report predicted inflation rates in the Kingdom to drop to 3.9 per cent, expecting it to stand at 3 per cent in 2017. The report also expected the deficit in the current account balance to deteriorate this year as it is set to widen to 14.1 per cent of the GDP compared with 12 per cent in 2011. However, the IMF noted that the current account deficit ratio to the GDP will start easing as of 2013, when it is expected to stand at 9.9 per cent, to reach only 4.3 per cent in 2017. As official unemployment figures that were released Tuesday by the Department of Statistics showed that jobless rates in the Kingdom during the third quarter of this year were 13.1 per cent, the IMF report predicted unemployment levels to see a slight decline. The IMF expects unemployment rates for 2012 and 2013 to be around 12.9 per cent.