IMF Calls Jordan a ‘Success Story’, Says Reforms Are Essential

Aerial view of the Jordanian capital, Amman (Reuters)
Aerial view of the Jordanian capital, Amman (Reuters)
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IMF Calls Jordan a ‘Success Story’, Says Reforms Are Essential

Aerial view of the Jordanian capital, Amman (Reuters)
Aerial view of the Jordanian capital, Amman (Reuters)

Jordan has successfully maintained monetary and financial stability despite the difficulties, announced the International Monetary Fund (IMF).

Jordan needs to accelerate the pace of structural economic reforms to push growth beyond the 2 to 3 percent it has recorded on average over the past years to reduce the high unemployment rates.

Leading the IMF mission, Ron van Rooden, said that unemployment was still high, at 22.9 percent, particularly among the youth and women, asserting that "structural reforms are essential for achieving strong and inclusive growth and creating more jobs."

Van Rooden noted that the reforms include enhancing the ease of doing business and reducing the cost of doing business, promoting competition, increasing labor market flexibility, and improving governance and transparency.

He indicated that the post-pandemic recovery continues, with real GDP expected to grow by 2.6 percent in 2023. However, it remains insufficient to improve the living standards of about 11 million people.

The IMF official, ending a visit to conduct the sixth review of the country's IMF-backed program, said Jordan remained firmly on track with crucial program targets met and progress through prudent monetary and fiscal policies.

"Despite a challenging global and regional environment, Jordan has maintained macroeconomic stability," van Rooden said.

He added that Jordan's macroeconomic stability had helped it tap more favorable interest rates from international capital markets than other sovereign countries when it issued last month's Eurobond worth $1.25 billion.

"We are calling Jordan a success story because they have consistently implemented sound macroeconomic policy, fiscal policy, monetary policy."

Jordan's Finance Minister Mohammed al-Ississ commented that the four-year IMF-backed program, scheduled to end next year, helped maintain economic stability amid difficult global conditions.

Van Rooden indicated that inflation is on the way to decline to 2.7 percent in 2023, compared to 3.8, with a tight monetary policy that helped to curb global inflationary pressures.

 



Etihad Airways Adds Damascus to its Network

Etihad Airways Airbus A320-200 is seen at the National Airport Minsk, Belarus April 19, 2018. REUTERS/Vasily Fedosenko/File photo
Etihad Airways Airbus A320-200 is seen at the National Airport Minsk, Belarus April 19, 2018. REUTERS/Vasily Fedosenko/File photo
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Etihad Airways Adds Damascus to its Network

Etihad Airways Airbus A320-200 is seen at the National Airport Minsk, Belarus April 19, 2018. REUTERS/Vasily Fedosenko/File photo
Etihad Airways Airbus A320-200 is seen at the National Airport Minsk, Belarus April 19, 2018. REUTERS/Vasily Fedosenko/File photo

Etihad Airways expanded its global network announcing Damascus as its new destination in the Middle East, starting from June 2026.

The new route reflects growing demand from travellers in the UAE and GCC to connect directly to Damascus, state news agency WAM reported.

Etihad’s new airbridge with Damascus also provides travellers from Syria with direct access to Abu Dhabi.

Service to Damascus will commence in June 2026 with four weekly flights, operated by Etihad’s Airbus A320 aircraft, featuring eight Business seats and 150 Economy seats.

Antonoaldo Neves, Chief Executive Officer at Etihad Airways, said: "This new route reflects our commitment to connecting people to the places that matter most to them."

He added: "We are proud to expand our network into Damascus – one of the world’s most historic and culturally important cities – and to support the Syrian population with direct links to and from Abu Dhabi, as well as convenient onward connections across our global network.”


Oil Edges Higher as Traders Weigh Rate Cut with Worries over US Economy

An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo
An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo
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Oil Edges Higher as Traders Weigh Rate Cut with Worries over US Economy

An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo
An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo

Oil prices edged higher on Thursday after the Federal Reserve cut interest rates as traders weighed the start of looser monetary policy against concerns about the US economy.

Brent crude futures were up 34 cents, or 0.5%, at $68.29 a barrel by 1140 GMT. US West Texas Intermediate futures added 37 cents, or 0.6%, to $64.42.

The Fed cut its policy rate by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs over the rest of the year, responding to signs of weakness in the jobs market.

Lower borrowing costs typically boost demand for oil and push prices higher, Reuters reported.

Persistent oversupply and soft fuel demand in the US, the world's biggest oil consumer, weighed on the market.

US crude oil stockpiles fell sharply last week as net imports dropped to a record low while exports jumped to a near two-year high, data from the Energy Information Administration showed on Wednesday.

A rise in distillate stockpiles by 4 million barrels, however, against market expectations of a gain of 1 million barrels raised worries about demand in the world's top oil consumer and pressured prices.


Kuwait Oil Minister Expects Demand Boost after US Rate Cut

Kuwaiti Oil Minister Tariq Al-Roumi. KUNA
Kuwaiti Oil Minister Tariq Al-Roumi. KUNA
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Kuwait Oil Minister Expects Demand Boost after US Rate Cut

Kuwaiti Oil Minister Tariq Al-Roumi. KUNA
Kuwaiti Oil Minister Tariq Al-Roumi. KUNA

Kuwait's Oil Minister Tariq Al-Roumi said on Thursday he anticipated higher oil demand following the recent US interest rate cut, particularly from Asian markets.

The US Federal Reserve, goaded by the risk of rising unemployment, reduced interest rates on Wednesday for the first time since December.

According to Reuters, the minister also expects a positive impact on oil prices if new sanctions are imposed on Russia.

President Donald Trump said on Saturday the US was prepared to impose
fresh energy sanctions on Russia, but only if all NATO nations ceased purchasing Russian oil and implemented similar measures.

"It will most likely have a positive impact on prices," the Kuwaiti oil minister said.