Jordanian economy “reasonably good,” says IMF

Economy

Published: 2024-02-11 15:28

Last Updated: 2024-02-29 20:40


Jordanian economy “reasonably good,” says IMF
Jordanian economy “reasonably good,” says IMF

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), described the Jordanian economy as "reasonably good," noting its success in coping with the surrounding geopolitical conditions.

- Efforts to reduce public debt -

In response to a question from Roya during the World Government Summit (the Eighth Arab Fiscal Forum) held in Dubai regarding reducing public debt, Georgieva affirmed that the Jordanian economy must be robust to reduce public debt effectively. This entails having sufficient government revenue to allocate to all priorities, including debt reduction.

Georgieva stated during a press conference on Sunday that there is a good partnership between Jordan and the IMF, and that the recent reform support program, valued at USD 1.2 billion to assist the Kingdom over four years, has started off well.

She emphasized the necessity for the government to earnestly pursue gradual public debt reduction under the new agreement between the Fund and the government. This involves continuing the gradual fiscal consolidation to put public debt on a downward trajectory, aiming for an 80 percent reduction by 2027.

- Tax collection equity -

She commended the Jordanian government's approach to revenue collection and the adoption of modern tax collection methods, gradually introducing electronic monitoring to enhance tax collection effectively and more equitably.

Regarding inflation in Jordan, Georgieva added that Jordan has succeeded in keeping inflation numbers low compared to neighboring countries through its precautionary reform policy.

She emphasized the necessity of regular and sustainable support for Jordan to bolster its economic reforms across various economic indicators, especially amidst the surrounding crises.