ERBD forecasts slow yet steady growth for Jordan

AMMAN — The European Bank for Reconstruction and Development (ERBD) forecasts Jordan’s economy to grow by 2.3 per cent in 2017 and by 2.5 per cent for 2018, according to its latest Regional Economic Prospects report.

For the EBRD’s southern and eastern Mediterranean (SEMED) region, the report expects a growth of 3.8 per cent in 2017 and of 4 per cent the year after, supported by the reform implementation and continued recovery in the tourism sector. 

This is in addition to export rebounds in Egypt and Jordan.

Economic performance remains weak amid continued regional turmoil, the report, a copy of which was e-mailed to The Jordan Times, showed.

It also indicated that conflicts in Syria and Iraq have disrupted trade routes, and strained public infrastructure, service provision and public finances.

Tourism arrivals picked up by 11 per cent in the first-half of 2017 after falling for six consecutive years until 2016 and unemployment increased to 17.9 per cent in the second quarter of 2017, according to the report.

It showed a modest pick-up in 2017/2018 is expected and reflects a slow recovery in exports and a rebalancing towards new markets and some reform progress.

“Downside risks to the forecast include deterioration in the regional security situation, lower-than-expected aid flows, and the effect of fiscal consolidation on consumption,” the report added.