Doha: The Jordanian economy is regaining momentum on improved macroeconomic conditions and a recovery in construction activity, tourism, and lower energy costs, ‘Jordan Economic Insight 2014’ published by the QNB Group has said yesterday.
According to the report, the real GDP growth is projected to accelerate to 3.6 percent in 2014 and average 4.4 percent during 2015-16, driven by private sector led growth. With support from the IMF and GCC grants, higher investor confidence is expected to lead to growth in the construction, a recovery in tourism and higher mining exports, it said.
Inflation is projected to decline over the medium term as the impact from the liberalisation of fuel prices and higher electricity tariffs subsides.
The Syrian conflict has imposed a significant burden on the Jordanian economy, with the loss of trade and tourism, the report added.
Domestically, the labour and housing markets are particularly hampered, with refugees putting downward pressure on wages and upward pressure on rents. The public provision of education and healthcare is strained, and pressure on scarce water resources as well as on municipal services is growing, the QNB Group report added yesterday.
The Peninsula
