The Report: Jordan 2018

Efforts to the Fulfill the Stipulations of a $723m Extended Fund Facility Agreement with the IMF Continue

As ongoing volatility continues to hamper growth in the region, Jordan has made significant progress in preserving macroeconomic stability and reducing its fiscal deficit in the past few years. Efforts to the fulfil the stipulations of a $723m extended fund facility agreement with the IMF continue and the government may need to pursue more widespread reforms to increase income tax revenues and limit tax avoidance so as to sustain recent momentum.

Jordan in brief

Significant progress in implementing an IMF-backed reform agenda in 2016 marked a turning point for the economy, helping Jordan reduce its budget deficit and bring GDP growth in constant prices from a 25-year low of 2% in 2016 to 2.2% the following year. While the latter figure was still below target, the Jordan Economic Growth Plan 2018-22 aims to put the country back on track towards meeting its Vision 2025 programme goals, with improvements to the business environment and digital expansion to play key roles in this. Several measures also seek to enhance the participation of the private sector, which provided 64% of net job creation during the first half of 2017.

Country Profile

• History continues to shape modern-day Jordan
• Legal reforms to build a more effective judicial branch
• Decentralisation bodes well for regional development
• Efforts to bridge the budget gap and limit tax avoidance