Inflation in the kingdom reached 19.4 per cent during the 12 months to the end of July, due in part to the government’s decision to remove subsidies from petrol, diesel and barley in February.

Wheat and domestic gas both continue to be subsidised.

The Moody’s report, which was released on 13 October, says that inflation had reached “an excessive level” that “could prove socially destabilising”.

The ratings agency also said that Jordan’s current account deficit of 18 per cent of gross domestic product in 2007, which was one of the largest in the world, could endanger the economy if overseas investors became “spooked by adverse economic events in Jordan or in their home countries”.