Jordan Times
Sunday, September 23, 2001
Kingdom takes positive economic strides
By Rana Awwad
AMMAN — Despite regional instability, the Jordanian economy managed to record positive indicators in the past months in most economic sectors, a senior government official said on Saturday.According to the Finance Ministry Secretary General Mohammad Abu Hammour, liquidity rose by 4.2 per cent during the first seven months of this year as compared to the same period the previous year.
The rise was fuelled by a 2.6 point increase in net domestic assets and a 1.6 point rise in net foreign assets of the banking system.
Credit facilities for the private sector grew by 9.1 per cent or JD388.2 million by end of July as compared to their levels at the end of 2000.
Meanwhile, said Abu Hammour, interest rates continued to decline gradually to reach 4.45 per cent and 4.65 per cent on three and six month deposit certificates against a 6 per cent rate at the end of last year.
Interest on deposits and loans also dropped by around 1 per cent by July 31 in comparison to figures registered by Dec. 31. The drop is expected to reinvigorate the economy as it would enhance investments and activate the Amman Stock Exchange (ASE), noted the official.
Foreign trade statistics showed that national exports grew by 18.8 per cent or JD114 million during the first seven months of this year. Re-exported goods grew by 6.4 per cent or JD9.9 million, while imports rose by 15.7 per cent or JD265.3 million during the same period. Jordan's chronic trade deficit widened by JD141.6 million.
Capital of companies registered at the Industry and Trade Ministry during the January-July period of this year climbed by 34.6 per cent as compared to the same period the year before.
Investments which benefited from the Investment Promotion Law during the first eight months of 2001, grew by 23.6 per cent or JD136.1 million against figures recorded in the same months of 2000.
However, inflation rose slightly — 1.1 per cent — by the end of August of this year against the January-August months of 2000. The rise, said Abu Hammour is attributed to the implementation of the second stage of the general sales tax since the start of this year. The 15 per cent hike in the prices of petrol, cooking gas and diesel, and a 21 per cent rise in the price of kerosene also contributed to higher inflation, he added.
Trading volume on the ASE saw a 65 per cent rise or JD129.7 million during the first eight months of this year, as compared to last year.