Jordan Times
Sunday, July 11, 2004
Abu Hammour sees 6% growth annually over coming three years
Jordan's
economic performance has strengthened and its outlook improved substantially in
the aftermath of the war in Iraq, supported by prudent macroeconomic management
— Krueger
By Mahmoud Al Abed
AMMAN, July 11 - Jordan's graduation from a 15-year economic programme with the International Monetary Fund (IMF) underline the sound fiscal and economic policies which are expected to yield an average growth rate of six per cent over the coming three years, officials say.
The executive board of the IMF on Saturday completed the third and final review of Jordan's performance under the last part of the programme, a two-year 85.28 million Special Drawing Rights (SDRs) (about $125.6 million) Stand-By Arrangement.
Finance
Minister Mohammad Abu Hammour said that Jordan's fully satisfactory economic
performance scored so high that the international body did not need the
customary formal executive board meeting to announce the approval.
“Our
relationship with the bank from now on will be of consultative nature. We will
only have purely national programmes, but advice from the IMF is
indispensable,” he indicated.
Jordan
joined the IMF on Aug. 29, 1952. Under the membership agreement, members are to
acquaint the body with its fiscal policies and keep channels of communication
open, the minister explained.
On
Jordan's economic performance, Abu Hammour said the country, which achieved 6.9
in economic growth in the first quarter, is expected to record 5.5 per cent by
the end of the year, while the forecasted average real growth in the coming
three years is expected to reach six per cent.
The
real challenges facing the national economy now, the minister pointed out, are
poverty, unemployment and foreign debt
burden.
But
the official is optimistic. “People will start to feel the results of this
progress on their living conditions and on per capita income,” Abu Hammour
said.
Anne
Krueger, first deputy managing director of the IMF seems to agree. In the
Tuesday approval statement, she was quoted as saying: “Jordan's economic
performance has strengthened and its outlook improved substantially in the
aftermath of the war in Iraq, supported by prudent macroeconomic management. The
combined effect of surging exports, rebounding domestic demand, and a
revitalised tourism sector has led to a strong recovery in real economic
activity in the first quarter of 2004.
“The track record of sound macroeconomic management, trade liberalisation and reforms on multiple fronts have transformed Jordan into a dynamic economy led by the private sector.”
She added: “The remarkably strengthened fiscal position in the first quarter of 2004 is the result of strong revenue measures and reforms implemented earlier and a manifestation of the authorities' resolve to contain budgetary outlays, notwithstanding large grant inflows. The package of revenue measures implemented in April will further strengthen fiscal performance in 2004.”