Amman, Nov. 20 (Petra) -- Moody’s Credit Rating Agency has maintained Jordan’s credit rating at Ba3 with a stable outlook, following a recent assessment of the kingdom’s economic performance. The agency’s report, issued earlier this month during its visit to Jordan, highlighted the resilience of the country’s economy amidst regional security challenges.

Moody’s projected that Jordan’s economic growth would reach 2.4% in 2024, with a gradual increase to 2.7%-3% by 2025-2026. The report noted that most sectors experienced growth during the first half of 2024. However, ongoing regional security developments have slightly impacted tourism revenues, leading to a modest decline in domestic government revenue collections.

The agency also expects the Jordanian government to implement measures to reduce the primary deficit of the general government to 2.4% of GDP in 2024, with a further decrease to 2% by 2025. It emphasized that Jordan’s adherence to its economic reform program with the International Monetary Fund (IMF) remains a key factor in ensuring fiscal sustainability.

Finance Minister Abdul Hakim Al-Shibli stated that Moody’s decision to affirm Jordan’s credit rating reflects international confidence in the country’s economy. He highlighted the government’s commitment to structural reforms, inspired by the Economic Modernization Vision and the IMF-backed reform program, which aim to enhance economic growth and ease financial pressures on citizens.

Recent government measures to support households include waivers on overdue financial penalties owed to the government, a 50% reduction in registration fees for residential properties exceeding 150 square meters, exemptions from licensing fees for vehicles with expired registrations exceeding one year, and the removal of re-registration fees for such vehicles.

Planning and International Cooperation Minister Zeina Toukan pointed to the structural reforms implemented in recent years as critical in enhancing Jordan’s economic resilience and stabilizing growth rates despite regional instability. She noted that these efforts have strengthened international institutions’ trust in Jordan’s economy, including credit rating agencies.

Central Bank Governor Adel Al-Sharkas emphasized that Moody’s affirmation underscores the strength of Jordan’s external sector and the robustness of its banking system in facing external shocks. He attributed this confidence to the kingdom’s financial and structural reforms, particularly those under the Economic Modernization Vision, which bolstered the economy’s capacity to navigate challenges.

Moody’s acknowledgment of Jordan’s stable credit rating comes as the government advances its reform agenda, aiming to sustain economic stability and foster growth amid regional and global uncertainties.

//Petra// RZ

20/11/2024 07:16:39