Macroeconomic Forecast Jordan

Jordan's balance of payments position is looking increasingly vulnerable. Rising fuel import costs and a flagging tourism industry have caused the current account deficit to grow substantially, and we see little improvement on either front this year. We forecast the current account deficit to increase to 7.8% of GDP this year, up from an estimated 7.2% of GDP in 2011, and expect that further interest rate hikes will become necessary to defend the dinar's peg to the dollar.

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