Increased Spending Widening The Deficit

With soaring food prices and social unrest continuing across the Middle East and North Africa, we expect Jordan's government to increase expenditure in 2011 in a bid to pre-empt protest activity. We therefore forecast the fiscal deficit to widen to 4.9% of GDP, compared to 4.2% in 2010. Beyond 2011 we project the fiscal deficit to narrow, although a shift into surplus remains unlikely for the foreseeable future.

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