AMMAN: Jordan public debt is projected to maintain a downward trend in the next few years as the government continues to press ahead with a robust approach to trim the nation’s debt and budget deficit.
Net public debt is forecast to edge up by 7.7 per cent this year, but still, this ratio is way less than the major 23.7 per cent rise recorded in 2012, according to a finance ministry report. In 2016, the net public debt is expected to grow by 5.2 per cent and by only 2.6 per cent in 2018.
The report was highlighted during a ministerial economic development meeting attended by Prime Minister Abdullah Ensour. The report delivers an overview of development related to public debt movement and management. By the end of the current year, the Kingdom’s public debt will comprise 81.7 per cent of gross domestic product and will retreat to 74.1 per cent in 2018. The public debt will amount to JD22.1 billion by the end of 2015, the report indicates.
Notably, the report projects that the financing needs of the central government and independent state institutions will go down by JD4.5 billion in the 2016-2018 period, down by 60 per cent from their current levels. The major slump is a culmination of tight fiscal control of budget deficit and retreating losses on the nation’s electric power company.
