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

International Monetary Fund

No 2023/049, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper discusses Jordan’s Fifth Review under the Extended Arrangement under the Extended Fund Facility and Request for Modification of Performance Criteria. Jordan has continued a broad-based recovery amid a challenging external environment, thanks to the authorities’ effective policy response. Financial challenges in the electricity sector are exacerbating fiscal pressures, particularly as food subsidies have increased considerably on the back of high international prices. As agreed in the fourth review, the authorities have eliminated the subsidies on gasoline and diesel. They also met structural benchmarks on introducing goods and services tax place of taxation rules; strengthening the governance of fiscal incentives; improving the competition framework; removing legal impediments to female employment; implementing a foreign direct investment survey; and rolling out e-procurement. The 2022 and 2023 fiscal targets are being relaxed slightly to accommodate higher food-related spending. The authorities remain committed to reducing public debt/gross domestic product to 80 percent by 2027. IMF expects the implications for the program to be manageable, given the authorities’ ownership and commitment to program objectives and Jordan’s continued ability to attract development partner support.

Keywords: staff appraisal; revenue generation; financing requirement; cabinet adoption of an action plan; fund staff; Arrears; Fiscal stance; Global (search for similar items in EconPapers)
Pages: 89
Date: 2023-01-26
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