Kingdom’s economy grows 2.7% in 2023, inflation to stabilise at 2.1% — WB

AMMAN — Jordan’s economy continued to demonstrate resilience throughout 2023 and into early 2024, according to a recent World Bank (WB) report.

The report highlighted a modest improvement in Jordan’s real GDP, which grew by 2.7 per cent in 2023. 

The growth, though moderate, was supported by a diversified economic base, the statement said, adding: "Despite the challenging regional environment, the Jordanian economy has shown notable strength and stability over the past several months."

The Jordan Economic Monitor report projected that inflation in Jordan will stabilise at 2.1 per cent in 2024. 

It also said that the medium-term economic outlook remains clouded by the ongoing regional conflict, which has disrupted trade and negatively impacted the tourism sector. 

While the broader economy has proven resilient thus far, these key areas have faced significant challenges, the report said.

The Jordan Economic Monitor provides insights into major economic developments and policies, placing them within a global and long-term context.

It also assesses the impact of these developments, as well as policy changes, on Jordan's economic future.

Economist Waseem Hussein told The Jordan Times: "The report shows that while the economic impact of the current regional conflict has been largely contained, trade and tourism have been adversely affected."

Hussein added that the report also highlighted the "impressive" growth of Jordan’s local manufacturing sector, which has reached record levels despite disruptions in trade routes and external markets. 

"This is a clear indication of the economy’s adaptability and resilience in the face of challenging circumstances," Hussein said.

Economic analyst Laith Ali noted that the 2.7 per cent GDP growth in 2023, though modest, is "significant" given the regional instability and geopolitical tensions.

Ali warned that while Jordan’s economic fundamentals remain stable, the continuation of regional conflicts could pose risks to long-term growth, particularly for sectors dependent on external trade and tourism.