AMMAN (Reuters) – Jordan hopes its growth will return to 2.5% in 2021 from a 3% cut in 2020 after economic activity was hit by lockouts, border closures and a sharp fall tourism due to coronavirus pandemic, finance minister said.
Mohammad Al Ississ told parliament in a budget speech that the 2021 forecast, which was in line with International Monetary Fund (IMF) estimates, was up to the country to reopen.
“This forecast is dependent on the assumption of continued economic activity without the removal of locks, otherwise this growth estimate will not be met,” Al Ississ told -regulation.
The gradual reopening of most of Jordan’s core industrial and manufacturing activity from last summer helped turn their economy back on earlier IMF estimates of a sharp 5% contraction.
The country’s public finances and balance of payments have been lost as tourism fell and lower wages from foreign workers with unemployment rose by up to 22% due to bankruptcy and layoffs.
Al Ississ also said the main goal of the 9.9 billion dinar ($ 14 billion) state budget this year is to maintain fiscal resilience to ensure financial stability.
Jordan’s commitment to IMF reforms and investor confidence in the country’s improved outlook helped it maintain stable sovereignty levels at a time when other markets were emerging, Al Ississ said.
Reciting with Suleiman Al-Khalidi; Edited by Toby Chopra