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FINANCIAL NEWS
Jordan’s budget deficit down by $704m in 2011
02 Jan 2011
(MENAFN) Jordan’s Minister of Finance, Mohammad Abu Hammour, announced that the Kingdom’s latest budget deficit has declined by $704 million, registering a 5.3 percent drop of gross domestic product (GDP), Arabian Business reported.
According to Abu Hammour, public expenditure will decrease by 2.5 percent to $8.2 billion, and will now amount to 30 percent of the GDP, as opposed to 33.9 percent, year on year, due to a 31.6 percent cut in capital expenditure.
Jordan’s economic growth is forecast to grow five percent in 2011, 5.5 percent in 2012 and 6 percent the following year, whereas inflation in 2011 is forecast at four percent, dropping to 3.5 percent in 2012 and three percent in 2013, revealed Abu Hammour.
It is worth noting that Jordan imports more than 90 percent of its oil and relies on foreign investment and grants to finance deficits in the budget and the current account.
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