(MENAFN- Jordan News Agency)
Amman, May 15 (Petra) -- The European Bank for Reconstruction and Development (EBRD) anticipates accelerated economic growth for Jordan amidst ongoing regional challenges, according to its latest Regional Economic Prospects report.
Despite contending with spillover effects from the prolonged conflict in Gaza, Jordan's economic resilience remains pronounced. The EBRD forecasts a notable uptick in Jordan's Gross Domestic Product (GDP), projecting an average expansion of 3.4 percent in 2024, up from the previous year's 2.6 percent growth.
This outlook reflects Jordan's ability to navigate external pressures and sustain economic momentum in the face of adversity.
However, the report also highlights persistent challenges within Jordan's labor market. Unemployment rates, particularly among women and youth, continue to pose significant hurdles to inclusive growth.
In the last quarter of 2023, the average unemployment rate stood at 21.4 percent, with even higher rates recorded among women (29.8 percent) and the youth demographic (42.4 percent). Addressing these disparities remains a key priority for Jordan's economic policymakers.
Inflation, meanwhile, experienced a modest uptick towards the end of the previous year, driven by higher prices of essential food items and a planned increase in water tariffs. However, by March 2024, inflation had eased to 1.6 percent, indicating a degree of stability in consumer prices.
Monetary policy in Jordan has remained aligned with decisions from the US Federal Reserve, with the Central Bank of Jordan maintaining a stable policy interest rate since July 2023. This approach aims to provide a conducive environment for economic growth while managing inflationary pressures and supporting financial stability.
Despite these internal efforts, Jordan's economic prospects are also influenced by broader regional dynamics. The EBRD's report acknowledges the impact of regional conflicts and political tensions on Jordan's economy, particularly in sectors such as tourism and investment.
Nonetheless, Jordan's strategic positioning, stable governance, and commitment to reforms continue to attract investor interest and underpin its economic resilience.
Looking beyond Jordan's borders, the EBRD's Regional Economic Prospects report indicates a mixed outlook for the broader Southern and Eastern Mediterranean (SEMED) region.
While economic growth is projected to accelerate to 3.4 percent in 2024, upward revisions have been tempered by slower-than-expected implementation of public investment projects in Egypt and spillover effects from the Gaza conflict.
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