A positive review by the Washington-headquartered IMF of Jordan’s economic performance on 12 October recommended releasing the next tranche of its 36-month $2bn stand-by agreement loan. Approval by the IMF executive board in early November would make a further $129m available to Amman, in addition to the $1.3bn provided so far.

Kristina Kostial, IMF mission chief for Jordan, praised Jordan’s “commitment to and progress in implementing their economic programme,” including public-private investment reform and budget adjustment. GDP growth of 3 per cent was driven by mining, tourism and utilities, while the banking and financial sectors were deemed “robust” and “stable.” Inflation fell to 2.7 per cent, easing pressure on the population regarding basic foodstuffs.

The mission is optimistic that the economy will continue to perform well, despite the violence in neighbouring Syria and Iraq, and the resulting influx of refugees. This depends on on-going reform, and despite the IMF’s focus on “sustainable growth” and an “equitable” distribution of budget cuts, avoiding overburdening Jordan’s population will be increasingly difficult.

The mission staff recommended reducing the number of reviews, with the next scheduled for February 2015.