Jordan's Draft 2021 Budget Projects 2.5% Growth

Jordan's economy is expected to shrink by 3 percent this year. (AFP)
Jordan's economy is expected to shrink by 3 percent this year. (AFP)
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Jordan's Draft 2021 Budget Projects 2.5% Growth

Jordan's economy is expected to shrink by 3 percent this year. (AFP)
Jordan's economy is expected to shrink by 3 percent this year. (AFP)

Jordan's draft 2021 budget forecasts JOD9.9 billion (USD14 billion) in state expenditure and economic growth of 2.5 percent after the COVID-19 pandemic caused the worst contraction in decades, the finance minister said on Monday.

Mohamad Al Ississ told Reuters the cabinet had approved a budget that would accelerate IMF-backed reforms to help the kingdom restore fiscal prudence for a sustained recovery.

He said the budget would continue major fiscal reforms, including continuing an aggressive tax evasion campaign that has netted this year hundreds of millions of dinars for the country's strained state finances.

"Despite the unprecedented challenges, fiscal stability remains our priority," he said.

Ississ said the government would not resort to new taxes but a commitment to raise public sector pay that was postponed this year would push state spending, the bulk consumed by salaries and pensions.

Jordan's economy is expected to shrink by 3 percent this year, an improvement from an earlier 5.5 percent, the sharpest contraction in two decades. Before the pandemic struck, the IMF had estimated economic growth of 2 percent.

The government has given priority to cushioning the pandemic's impact on the poor by expanding a social safety net that has provided support to at least 2.5 million people, more than a third of the country's citizens, Ississ said.

It will help to ease the pain of the pandemic that has pushed unemployment to a record 23 percent, he added.

Although the kingdom has been more dependent than other regional economies on hard-hit sectors such as tourism and remittances, its commitment to an IMF-backed USD1.3 billion four-year program has helped to maintain external financing from major Western donors.

Jordan's commitment to IMF reforms and investor confidence in the country's improved outlook helped it to maintain stable sovereign ratings at a time when other emerging markets were being downgraded, the minister added.

Last week, Moody's affirmed Jordan's B1 credit rating, citing expenditure control and improved tax compliance. That followed a B+/B rating from Standard and Poor’s in September.



Turkish Manufacturing Sector Contracts Further in March, PMI Shows

Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)
Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)
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Turkish Manufacturing Sector Contracts Further in March, PMI Shows

Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)
Shoppers walk through the spice bazaar in the Eminonu district of Istanbul on April 1, 2025. (Photo by Ed JONES / AFP)

Türkiye's manufacturing sector contracted further in March, with output and new orders continuing to ease amid difficult market conditions both domestically and internationally, a survey showed on Wednesday.
The Purchasing Managers' Index (PMI) slipped to 47.3 from 48.3 in February, marking the lowest reading since October last year, survey compilers S&P Global reported. A PMI reading below 50 indicates a contraction in activity, Reuters reported.
March marked the 21st consecutive month of declining new orders, with the slowdown being the most pronounced since last October. New export orders fell at the fastest pace since November 2022.
"Challenging market conditions both at home and abroad meant for further moderations in output and new orders in March as Turkish firms struggled to secure business," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
Despite the downturn, there were signs of stabilization in some areas. Inventory levels held steady after 10 months of depletion, and suppliers' delivery times improved for the first time in six months, reflecting reduced demand for inputs.
Inflationary pressures eased slightly although currency weakness continued to drive up costs. Employment in the sector also saw a slight reduction for the fourth consecutive month, though the decrease was the smallest so far this year.
Manufacturers remain cautiously optimistic about future output, hoping for improvements in new orders and demand from the construction sector over the coming year.