IMF staff reach staff-level agreement with Jordan on 5th review under EFF

IMF staff reach staff-level agreement with Jordan on 5th review under EFF

An International Monetary Fund (IMF) mission led by S. Ali Abbas, reached a staff-level agreement on the fifth review of the authorities’ economic reform programme supported by the Extended Fund Facility (EFF) arrangement. This agreement is subject to approval by the IMF’s management and the Executive Board, according to a statement from the IMF.

At the conclusion of the discussions, Abbas issued the following statement:

“Despite turbulent global economic conditions, sound fiscal and monetary policies have helped maintain macroeconomic stability and access to international markets. The central government is expected to narrow its primary deficit (excluding grants) by 0.7 per cent of GDP to 3.7 per cent of GDP in 2022, with larger-than-expected fuel and food subsidy costs being offset by a rationalization of non-priority spending and a significant revenue overperformance.

“The latter reflects the government’s ongoing institutional and legislative efforts to tackle tax evasion and avoidance. The Central Bank of Jordan has increased interest rates in line with the US Federal Reserve policy rate in order to safeguard the peg; international reserves have remained adequate.

“The post-COVID recovery continues to build momentum, with real GDP growth expected at around 2.7 per cent in 2022, revised up from 2.4 per cent at the last