Economic Growth in Jordan Expected at 2.3% in 2017: EBRD

تم نشره في Tue 7 November / Nov 2017. 12:00 AM
  • European Bank for Reconstruction and Development (EBRD) - (SeclGroup)

AMMAN — The European Bank for Reconstruction and Development (EBRD) said economic growth in Jordan is expected to remain at 2.3 per cent in 2017 and reach around 2.5 per cent in 2018.

In its 2017 economic growth forecasts issued Tuesday, the EBRD said economies in the southern and eastern Mediterranean (SEMED) region are expected to show growth of 3.8 per cent in 2017 and 4 per cent in 2018, supported by reform implementation and continued recovery in the tourism sector, and export rebounds in Egypt and Jordan.

Morocco is the only country in the SEMED region that is expected to see a slow-down in growth during 2018, as the base effect from the agricultural rebound in 2017, the EBRD noted.

Average growth across the EBRD region is seen at 3.3 per cent this year, a rise of 0.9 percentage points against the previous forecast from May, and compared with growth of just 1.9 per cent in 2016.

The pace of growth has picked up in 27 of the EBRD’s economies this year, the first time that such a broad upturn has been seen since 2010.

Several countries, notably Romania and Turkey, are enjoying growth rates comparable to the pre-crisis levels of the mid-2000s.

The EBRD’s chief economist, Sergei Guriev, said: "The broad-based recovery is a very welcome development. It also creates a window of opportunity to carry out reforms that will ensure the sustainability of the stronger growth rates over the longer term." Growth across the region is expected to continue into 2018, but at a slightly more moderate pace of 3.0 per cent.

Despite the recent acceleration in economic output, the EBRD expects average growth in the region to remain slightly below that of other comparable emerging markets.

It also said the current outlook is subject to numerous risks, including geopolitical tensions, persistent security threats, the growing appeal of populist anti-globalisation policies in advanced economies and a high degree of concentration in the sources of global growth.