Kingdom’s economy expected to grow by 2.4% in 2022 — IMF

AMMAN — The International Monetary Fund (IMF) on Wednesday expected the Jordanian economy to grow by 2.4 and 3.1 per cent in 2022 and 2023 respectively. 

In the Regional Economic Outlook for Middle East and Central Asia, the IMF expected inflation to stand at around 2.8 per cent for 2022 and 2.5 per cent next year, the Jordan News Agency, Petra, reported.

The recovery in the Middle East and North Africa (MENA) is expected to be uneven. Real GDP growth is forecast at 5 per cent in 2022 (a 0.9-percentage-point upgrade from October), down from 5.8 per cent in 2021, according to the IMF website.

Inflation in the region is projected to remain elevated at 13.9 per cent due to higher food and energy prices and, in some cases, exchange rate depreciation and lax monetary and fiscal policies.

A prolonged war in Ukraine and further sanctions on Russia will lead to sustained trade disruptions, higher commodity prices and prolonged supply shortages of vital food items. This will weigh on commodity importers, raise food security concerns — particularly in low-income countries — and carries risks of social unrest, according to the report.

MENA oil importers are being hit by higher commodity prices and tightening financial conditions, fuelling inflation and worsening external and fiscal accounts. Some countries are also directly exposed, given their heavy reliance on wheat and energy imports from Russia and Ukraine.