Jordan Times
Saturday, September 19, 1998
Jordan central bank sees 2.5 per cent growth in 1998
AMMAN (R) — Jordan's central bank forecast a modest 2.5 per cent
growth in real GDP (gross domestic product) in 1998 against 2.2 per cent last year, the
bank's annual report said.
The bank attributed the modest growth, at market prices, to an unfavourable regional
environment hurt by uncertainty over Middle East peace-making and depressed oil prices,
which impact on Jordanian hard currency remittance flows and labour opportunities in
oil-rich Arab Gulf states.
Inflation was forecast to stay within “acceptable levels” of around 3.5 per cent
in 1998 provided IMF-directed structural reforms stay on track, the bank said.
Officially the cost of living index which focuses on a handful of basic commodities has
remained constant in an average range of four to five per cent over the last few years.
The bank said the 1998 budget deficit, excluding foreign aid, was expected to reach six
per cent of GDP and 2.6 per cent after factoring in assistance, which was budgeted at
189.8 million dinars.
But the government was hopeful growth in local revenue would top 11.6 per cent, while
public expenditure would rise by a more modest 8.4 per cent, reflecting greater fiscal
restraint, the bank's report said.