A Central Bank of Jordan's report said that growth rate this year is expected to reach 3 percent while the rate of inflation will remain under control.
The CBJ's 1999 report said that among the reasons that will affect the growth rate this year is the increase in oil prices on the international markets that will reflect positively on the Middle East countries and improvements in the agriculture sector.
The gross domestic products (GDP) rose in 1999 by 1.6 percent compared to 1.7 percent in 1998. The GDP amounted to JD5.2 billion in 1999 compared to JD5.1 billion in the previous year.
It said the decline in the growth rate was due to the draught, which hit the Kingdom in the past year. The report said that citizen's share of the GDP in 1999 amounted to JD1080 [$1524] or a 0.8 percent decline compared to the 1998 figure.
The commercial bank deposits in the past year rose by 12 percent compared to 2.5 percent in 1998. The 1999 deposits amounted to JD4.6 billion compared to JD4.1 billion in the previous year.
The deposits in foreign currency amounted to JD2.8 billion compared to JD2.6 billion, the report said. The CBJ's foreign reserves rose by $821.3 million to reach $1990.9 million, which is enough to cover the Kingdom's imports for 7.1 months, the report said.
The capital expenditure declined by 18.2 percent while the current expenditure slipped by 0.1 percent.The report said that the budget deficit amounted to JD417.4 million, or 7.9 percent of the GDP, before foreign aid, compared to 10.8 percent in 1998.
The trade deficit amounted to 25 percent in 1999 as a result of the decline of the Kingdom's import bill by JD89.9 million and the increase of its exports by JD20.9 million, the report said. The Kingdom's exports in 1999 stood at JD1.2 billion while imports at JD2.6 billion. — (Jordan Times)
By Tareq Ayyoub
© 2000 Mena Report (www.menareport.com)
