Jordan:Fifth Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Jordan

Growth, at 2.7 percent, in 2022–23 is somewhat stronger than expected, on account of a broad-based post-COVID recovery and positive spillovers from the region. However, the medium-term outlook is weighed down by elevated commodity prices, tightening financial conditions, and a slowing global economy. Inflation, projected at 4.4 percent for 2022, has increased but remains moderate and should ease in the period ahead. The 2022 current account deficit has widened somewhat, due to a larger import bill; but international reserves have been buoyed by the rebound in travel receipts and remittances. Financial challenges in the electricity sector are exacerbating fiscal pressures, particularly as food subsidies have increased considerably on the back of high international prices. With elevated unemployment and commodity prices, social conditions remain challenging.