The World Bank said Jordan’s GDP should reach 3 percent in 2016, up from 2.4 percent in 2015, which was the slowest pace of growth in four years.
In its latest MENA Economic Report, the bank said the rise in growth would be driven by an expansion in the Kingdom’s mining and quarrying sector, as well asa “positive base effect” from its tourism and construction sectors.
The international financial institution said Jordan’s plan to secure an Extended Fund Facility with the IMF is also “anticipated to support further fiscal consolidation efforts in parallel with growth-enhancing and job-creating structural reforms.”
But the bank warned continued growth was dependent on no further deterioration in regional stability. “Managing repercussions from the regional security and political situation is a key risk in addition to the challenges of hosting a substantial number of Syrian refugees,” it said.
It added that persistently low oil prices also posed a risk in the medium-term, given their potential impact on remittances, exports, FDI, and grants from the GCC. The bank said fiscal adjustment measures are likely to be difficult, while the willingness and speed of reform implementation, particularly to improve the business climate, will be crucial to meet Jordan’s investment aspirations.