Growth Outlook Remains Strong

We believe that strong private consumption coupled with an increase in government spending will bolster Jordan's economy in 2011. Despite tensions in the MENA region having escalated of late, Jordan's economy will remain robust, and we forecast GDP to expand by 3.8% in real terms in 2011. That said, the country's exposure to the region (half of its exports are directed to MENA) poses significant downside risks to our forecast, with prolonged protests likely to weaken demand and dent consumer confidence domestically.

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