The Washington-based IMF forecasts a 3.2 per cent expansion for the Jordan economy in 2016, which is lower than the national government’s growth projection of 3.7 per cent, and higher than IMF’s final growth projection of 2.5 per cent in 2015.

Kristina Kostial, IMF mission chief to Jordan, was quoted by local media saying that the economic activity in the kingdom is expected to accelerate over the next two years, boosted by lower oil prices and a gradual recovery in investor’s confidence under the assumption that the regional security situation does not worsen. The IMF further expects the kingdom’s economy to grow by 3.7 per cent in 2017.

The IMF revised its growth projection for Jordan three times in 2015, starting with an initial 3.8 per cent in May, to 3 per cent in August, 2.9 per cent in October and finally 2.5 per cent in November.

Jordan’s economy struggled in 2015 due to a slowdown in its key sectors, including agriculture and exports, as well as worsening regional instability. This has been further exacerbated by the influx of refugees from Syria.

According to Kostial, Jordan’s growth has been weaker than expected and too low to make a dent in unemployment and that this underperformance reflected significant external shocks over the past years.

The Jordan government has set out a more positive two-year economic growth forecast, from 3.7 per cent in 2016 and 4.5 per cent in 2017.

In August 2015, the Washington-based IMF released the final disbursement of nearly $400m of the $2bn standby agreement (SBA) with Amman, which was signed in 2012. The SBA has been built around the need to support the country’s economy in dealing with the aftermath of the conflicts in Iraq and Syria.

It is understood that the IMF and the Jordanian government have started a new round of discussion over a new assistance programme to help the kingdom implement much needed structural reforms. The Extended Fund Facility (EFF), Kostial cited, would focus on growth and job creation and improving the kingdom’s business environment to be more attractive to investors.