AMMAN (Reuters) – A rebound in Jordan’s financial expansion to a forecast 2.5% in 2021 is dependent on continued economic action for the duration of the coronavirus pandemic, the country’s finance minister said on Sunday.
Advancement contracted by 3% in 2020, hit by lockdowns, border closures and a sharp tumble in tourism for the duration of the pandemic, but the federal government and the Global Monetary Fund (IMF) both forecast a bounce of comparable magnitude this yr.
“This forecast is dependent on the assumption of ongoing economic action without the need of imposing any lockdowns, if the opposite transpires, this progress estimate will not be reached,” Mohammad Al Ississ instructed deputies for the duration of a funds speech in parliament.
The country’s general public funds and harmony of payments have been strained by the collapse of tourism and reduce remittances from staff abroad, with unemployment soaring to a history 22% thanks to bankruptcies and layoffs.
But the gradual reopening of most of Jordan’s important company and production activities since previous summer time assisted its financial system temper previously IMF estimates of a severe 5% contraction in 2020.
“The economic expense of the pandemic is huge. It had a deep damaging influence on our financial system that posted a contraction for the very first time in many years,” Al Ississ reported.
He extra that the main aim of this year’s 9.9 billion dinar ($14 billion) point out funds was to preserve fiscal prudence to aid be certain economic steadiness.
The governing administration sought to lower the main deficit to 3.7% of GDP from 5.7 % last year by keeping the tempo of fiscal consolidation and reforms to beat rampant tax evasion and stamp out extra than $1.4 billion in tax exemptions, he reported.
Jordan’s determination to IMF reforms and trader self-confidence in the country’s improved outlook assisted it to maintain secure sovereign rankings at a time when other rising markets were currently being downgraded, Al Ississ reported.
Reporting by Suleiman Al-Khalidi Enhancing by Toby Chopra and David Goodman and Kirsten Donovan