Gov't Outlines Ambitious Economic Plans, Aims For Growth Amid Regional Challenges

(MENAFN- Jordan News Agency)

Amman, Nov. 21 (Petra) -- Minister of State for Economic Affairs, Muhannad Shehadeh, outlined the government's economic plans during a meeting with economic journalists, promising a realistic strategy aimed at achieving growth, job creation, and improving citizens' quality of life.
Joined by Finance Minister Abdel Hakim Al-Shibli and Minister of government Communication and Official Spokesman Mohammad Al-Momani, Shehadeh said the government is committed to implementing policies in line with Jordan's Economic Modernization Vision, which it regards as a strategic blueprint for development.
Shehadeh emphasized that the government, despite having been in office for just 60 days, has already initiated measures designed to stimulate the economy and address the impacts of regional political instability. He highlighted Jordan's security and political stability, coupled with the leadership of King Abdullah II, as critical enablers of economic progress.
The minister outlined steps taken to simplify bureaucratic processes and balance public expenditure with revenue collection, while also advancing large-scale investment projects. He noted that these efforts are essential to achieving the Vision's objectives, which focus on eight drivers, 35 sectors, and 360 economic initiatives aimed at growth and sustainability.
Shehadeh said the government has started easing customs and tax restrictions to release liquidity into the economy, noting that more than 300 million dinars are tied up in unresolved tax and customs cases. Resolving these disputes, he said, would inject much-needed capital into the economy and help activate local markets.
The government also announced a series of sector-specific policies. These include measures to revive medical tourism, such as lifting entry restrictions on certain nationalities and introducing direct flight routes to Jordan. Shehadeh encouraged the private sector to capitalize on these changes to attract medical tourists and boost the healthcare economy.
Another initiative involves waiving licensing fees and fines for over 550,000 unlicensed vehicles, which currently account for 332 million dinars in unpaid dues. This decision aims to provide financial relief to citizens and improve economic circulation.
Additionally, the government has amended regulations to exempt profits from exports of goods and services from income tax starting in 2024. This measure, Shehadeh said, aligns with the Economic Modernization Vision to ensure the sustained growth of sectors like IT, engineering, legal services, and consulting. He noted that the services sector contributes 60% of Jordan's GDP and plays a crucial role in job creation.
Finance Minister Abdel Hakim Al-Shibli said the 2024 budget reflects realistic expectations and includes allocations for major projects such as the national water carrier and a railway linking Aqaba to industrial areas. The budget allocates 1.469 billion dinars for capital spending, a 16.5% increase over 2023. It also ensures subsidies for essential goods, including bread, barley, and cooking gas cylinders, while maintaining support for key social protection programs.
The budget projects total revenue of 10.233 billion dinars, comprising 9.498 billion dinars in domestic revenue and 734 million dinars in foreign grants. It anticipates real GDP growth of 2.5% and nominal growth of 4.9%, with inflation expected to remain moderate. Al-Shibli said these figures underscore the government's commitment to fiscal and monetary stability.
Shehadeh highlighted major infrastructure projects that are central to the Economic Modernization Vision. Among these is the national water carrier project, which is expected to secure financial closure next year. The project will play a vital role in stimulating economic activity across various sectors.
Another key project is the railway linking Aqaba to industrial areas such as Shidiya and Ghor Al-Safi. This initiative is expected to reduce transportation costs, improve logistics, and enhance the competitiveness of Jordanian businesses. Shehadeh said final agreements on the project are anticipated in the first quarter of 2024.
Shehadeh reaffirmed the government's commitment to managing public debt effectively, including servicing domestic and external obligations. He said the government is exploring scenarios to restructure part of the debt through concessional loans with lower interest rates, leveraging Jordan's strong relations with international partners. He noted that global interest rate declines could further benefit Jordan's debt management strategy.
Shehadeh praised the banking sector for reducing interest rates on housing loans by nearly 5% following government action to stimulate the housing market. He described this as a positive development that would boost construction and related industries.
He also cited the recent meeting between King Abdullah II and foreign investors as a strong signal of confidence in Jordan's economic policies and stable monetary framework, which he described as a backbone for attracting investments.
Minister Al-Momani emphasized the government's commitment to transparency and collaboration with stakeholders in implementing the Economic Modernization Vision. He said the government is focused on policies that deliver tangible improvements for citizens while addressing the challenges facing Jordan's economy.
Al-Shibli added that the government has allocated increased funding for social programs, including a 50% rise in student aid and additional resources for the National Aid Fund. He emphasized that these measures aim to support vulnerable groups while fostering overall economic growth.
The ministers concluded by reiterating the importance of aligning fiscal policies, investment projects, and economic reforms with the Economic Modernization Vision to achieve long-term stability and prosperity for Jordan.

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