World Bank estimates 2.5% economy growth for Jordan

AMMAN — The World Bank on Tuesday said that the predicted growth for the Jordanian economy was 2.6 per cent in 2023, surpassing its previous estimate in June by 0.2 per cent, the Jordan News Agency, Petra, reported.

The bank forecasts that the economy's growth will decrease by 0.1 per cent in 2024 Jordanian, reaching 2.5 per cent, before rebounding to 2.6 per cent in 2025. 

The Jordanian government, in its 2024 budget, also anticipates a 2.6 per cent growth in the local economy. 

Jordan's Gross Domestic Product (GDP) achieved a 2.7 per cent growth in constant market prices during 2023 third quarter compared with the same period in 2022, according to the Department of Statistics.

The bank also reports a global growth slowdown to 2.4 per cent in 2024, reflecting the effects of strict monetary policies to curb high inflation, restrictive credit conditions, and global trade and investment weakness.

The bank also said that the recent conflicts in the Middle East, such as the Israeli aggression on Gaza and the war in Ukraine have increased the geopolitical risks.

The report also suggests that escalating conflicts could lead to increased energy prices, with broader consequences on global activity and inflation. 

The bank regarding the Middle East stated that the conflict has led to uncertainty about growth expectations in the region. Assuming no escalation in the Middle East, the growth rate in the Middle East and North Africa is expected to rise to 3.5 per cent in 2024 and 2025. In the Gulf Cooperation Council countries, the growth rate is predicted to reach 3.6 per cent in 2024 and 3.8 per cent in 2025, while oil-importing countries are expected to see a growth rate of 3.2 per cent in 2024 and 3.7 per cent in 2025.