Jordan Times
Monday, February 7, 2005
IMF sees exports rising 6-8
per cent annually
Economic and financial performance commended
AMMAN (JT) — The International Monetary Fund (IMF) expects exports of goods to
rise between six and eight per cent annually in the medium-term, Finance
Minister Mohammad Abu Hammour said on Sunday.
Referring to the IMF's evaluation of the Jordanian economy, the minister
indicated that such growth would be realised from the Iraqi market and the free
trade agreements with the United States and the European Union.
According to Abu Hammour, the IMF sees an improvement in the performance of the
national economy in light of the attractive investment climate and the emergence
of the Kingdom as a focal point for economic activities in Iraq besides the
capability to penetrate to foreign markets.
The IMF expressed confidence that the structural reforms taken recently would
support the country's economic growth in the medium-term.
In commending the Jordanian economy and the good financial performance, the IMF
recommended that the same financial policy currently adopted be pursued over the
coming three years in order to attain the targetted debt ceilings.
The IMF expectations for 2004 included an eight per cent drop in the
government's public debt to 92 per cent of the gross domestic product (GDP).
The IMF economic evaluation report expects real GDP growth to exceed six per
cent in 2004 and inflation rate to rise to 3.4 per cent.
The report pointed to a 64 per cent surge in the stock exchange index 2004 and a
decline in the unemployment rate to 12.5 per cent in the first six months of
2004 compared to 14.5 in 2003.
The merger of the income tax department and the sales tax department in one
entity was credited for focusing on tax revenues and for maintaining a low
deficit in the general budget at around 3.4 per cent of GDP.
With tax revenues expected to reach 17.2 per cent of GDP, the IMF noted that
current expenditure was slashed to 2.5 per cent of GDP whereas capital
expenditure expanded by 40 per cent.
On the other hand, expenditures for the Socio-economic Transformation Plan also
increased by 27 per cent last year.
The minister said the report showed a 47 per cent surge in exports last year,
whereas imports rose by 39 per cent.
Foreign direct investment reached around $364 million during the first half of
2004, while foreign currency reserves reached $4.8 billion during 2004, covering
the value of seven months of imports.