An International Monetary Fund (IMF) team led by Ali Abbas proposed an increase in disbursement allocated to Jordan by around $165 million in 2022, including an augmentation of access of around US$100 million, in light of higher external financing needs, arising from global economic pressures.
This will bring total IMF disbursements over 2020-2024 to Special Drawing Right (SDR) 1,438 million (or around $2 billion), including the amount drawn under the Rapid Financing Instrument.
This is in addition to SDR 329 million (or $469 million) disbursed as Jordan’s share under the IMF General SDR allocation in August 2021.
The proposal followed an IMF team, led by Ali Abbas, in-person mission from May 8-23, 2022 with the Jordanian authorities.
The mission held discussions on the 2022 Article IV Consultation with Jordan and reached a staff-level agreement with the Jordanian authorities for the completion of the fourth review under the Extended Fund Facility (EFF) arrangement.
This agreement is subject to approval by the IMF’s management and the Executive Board.
“The authorities’ swift and decisive actions have mitigated the effects of the COVID-19 pandemic on the economy. Helped by the economic reopening, a recovery, supported by targeted fiscal and monetary measures, is underway, with real GDP growth expected at around 2.4 percent in 2022, and rising to above 3 percent over the medium-term,” IMF website cited Abbas as saying.
However, Abbas added, unemployment persists at very high levels, particularly among the youth.
He said, “Inflation – which has been contained in 2021 – has risen slightly this year, reaching 3.6 percent at end-April. Supported by a stronger rebound in tourism receipts and robust exports, the current account deficit will narrow from 8.8 percent of GDP in 2021 to 6.5 percent of GDP in 2022, a somewhat higher level than previously expected, primarily reflecting more elevated fuel import prices.”
Source: Jordan News Agency