Amman: The Jordan Investor Confidence Index, published by the Jordan Strategy Forum, rose by 1.7% in the third quarter of 2024, reaching 173.6 points, up from 170.7 points in the second quarter. This increase indicates an overall positive sentiment among investors despite mixed signals in specific economic areas.
According to Jordan News Agency, confidence in economic activity saw a decline, dropping to 161.8 points in Q3 2024 from 167.3 points in the previous quarter. Real Gross Domestic Product (GDP) experienced a growth of 2.6% during Q3 2024, which was slightly below the 2.7% growth recorded in Q3 2023 but showed improvement compared to the 2.4% growth in Q2 2024.
The general budget deficit, after grants, widened to JOD 695.2 million in Q3 2024, an increase from JOD 647.6 million in the same quarter of the previous year and JOD 342.8 million in Q2 2024. On a positive note, foreign direct investment inflows into Jordan reached JOD 301 million in the third quarter, and the industrial production index increased to 90.6 points from 87.1 points in the preceding quarter.
The monetary system remained stable, with the confidence index maintaining 200 points for the third consecutive quarter. The Central Bank’s foreign exchange reserves grew significantly to JOD 14.35 billion in Q3 2024, up from JOD 13.28 billion in Q2 2024. The interest rate differential between the dinar and the dollar narrowed to 2.07% in Q3 2024 from 2.17% in Q2 2024.
The value of returned checks increased by 7.3%, totaling JOD 389.3 million, compared to JOD 362.6 million in the previous quarter. Confidence in the financial system improved as the index rose to 159.1 points from 148.3 points in Q2 2024, with bank credit to the private sector growing by 2.2% during Q3, reaching JOD 31.42 billion.
Conversely, the Amman Stock Exchange index declined by 18.2 points to 4,316.5 points in Q3 2024. The share trading ratio by foreign investors on the exchange fell to 75.1%, down from 105% in Q2 2024, indicating a decrease in foreign interest in the local equity market.