AMMAN: According to recent reports Standard & Poor’s Ratings Services (S&P) affirmed its long- and short-term foreign and local currency ratings on Jordan at “BB-/B”, with a “stable” outlook.
The report showed that lower oil prices and energy diversification efforts will ease pressure on Jordan’s public finances and help contain current account deficits. The economic growth was weighed by the more-expensive oil replacing cheaper gas supplies from Egypt, which have been significantly disrupted since 2012. “The benefits of lower oil prices on growth and easing pressure on external balances, in particular, will be partly offset by ongoing regional conflicts in Syria and Iraq,” according to the report.
The financial services company expected regional turmoil to negatively affect Jordan’s economy, suppressing important growth drivers including investment, tourism, and trade. Jordan will remain highly dependent on bilateral and multilateral lenders and donors to close its funding gap. Despite the difficult regional environment, S&P expected Jordan’s GDP growth to continue to expand modestly in 2015 to stand at 3.8% compared to 3.1% in 2014.
