EBRD encourages tax reforms in Jordan

Dead Sea, Two European Bank for Reconstruction and Development (EBRD) officials on Wednesday said that Jordan is undergoing ambitious reforms and voiced the bank’s support of tax reforms carried out by the Jordanian government.

This came at a joint press conference held by the bank’s Chief Economist, Sergei Guriev and Artur Radziwill, and Artur Radziwill, EBRD Director for Country Economics and Policy, on the sidelines of the bank’s 27th annual meeting, which began in the Dead Sea region today.

Regarding a possible hike in interest rate on the dinar instruments, both officials said that such hike is expected as long as the dinar is pegged to the dollar.

The officials said they expect economic growth in the bank’s southern and eastern Mediterranean region (Jordan, Egypt, Tunisia, Morocco and Lebanon) to grow by 4.4 percent in 2018 and 4.8 percent in 2019.

Regarding the Jordanian economy, they said it is expected to see a modest upturn in 2018 driven by an increase in private consumption due to the increase in the number of refugee population and the implementation of a number of structural reforms.

They also said they expect oil prices to rise because of the U.S. withdrawal from the nuclear deal with Iran and the return of sanctions. They said that the US decision would raise the price of oil “a few dollars” if the United States and European countries imposed sanctions on Iranian oil imports.

Source: Jordan News Agency