IMF: Jordan economy performed well in 2012 despite challenges

The International Monetary Fund (IMF) on Wednesday said that Jordan's economy performed in 2012 as the country has faced challenges during the year, Pertra news agency reported. In a press release after a fund mission visited Amman during December 3-20 in the context of the first review of the Jordans Stand-By Arrangement (SBA), IMF said that the Kingdon faced challenges from the disruption of the flow of natural gas, the ongoing conflict in Syria, and an acceleration of influx of refugees "Combined with higher oil and food prices and a shortfall in grants, this has put further pressure on the countrys economy." Nonetheless, growth is expected to increase slightly to 3 percent compared with 2.6 percent in 2011, while average inflation is expected to be around 5 percent for the year, Kristina Kostial, IMF Mission Chief for Jordan said in the statement. "Despite this challenging environment, the authorities have been implementing sound macroeconomic policies aimed at reducing fiscal and external imbalances in a socially acceptable way," the statement noted.