Jordan Investor Confidence Index decreased by 1.9 points in Q3 2022

AMMAN — The Jordan Investor Confidence Index decreased from 178.1 points in the second quarter (Q2) of 2022 to 176.2 points in the third quarter (Q3) of last year, or by 1.9 points, according to an update from the Jordan Strategy Forum (JSF).

Confidence in the economy, monetary system, and the financial system is the driver of business fluctuations. When confidence increases, consumers and investors would want to buy and invest at prevailing market prices and vice versa, the JSF said.

On average, confidence in the Real Economy Index increased from 178 points in the second quarter of 2022 to 186.8 points in the third quarter of 2022.

The JSF also noted that the growth rate in real GDP decreased from 2.9 per cent in the second quarter of 2022 to 2.5 per cent in the third quarter of 2022.

The budget deficit has increased from JD501.7 million in Q2 202  to JD559.5 million in Q3 2022.

As for foreign direct investment, inflows increased from JD132.4 million in Q2 2022 to JD206.3 million in Q3 2022. This is equivalent to 55.8 per cent.

The manufacturing quantity production index decreased from 94.3 points in Q2 2022 to 94.1 points in Q3 2022.

Confidence in the Monetary System Index decreased from 156.1 points in Q2 2022 to 141.3 points in Q3 2022.

The Central Bank of Jordan’s gross foreign reserves decreased from JD11.9 billion in Q2 2022 to JD11.8 billion Q3 in 2022 — a decrease of 0.5 per cent.

The interest rate differential between the Jordanian Dinar and the US dollar widened from 2.54 per cent in Q2 2022 to 2.69 per cent in Q3 2022.

The value of returned cheques decreased from JD303.1 million in Q2 2022 to JD274.7 million in Q3 2022, which is equivalent to -9.4 per cent.

Confidence in the Financial System Index decreased from 200 points in Q2 2022 to 189.8 points in Q3 2022.

The Amman Stock Exchange Weighted Index reached 4,760.1 points in Q3 2022, a decrease of 88.3 points from the previous quarter.

The “Purchased-to-Sold shares by Non-Jordanians” ratio in the ASE reached 90.9 per cent in Q3 2022 compared with 46.7 per cent in the previous quarter.

Private sector credit reached JD30.6 billion. This increase is equivalent to 1.7 per cent from the previous quarter.