Jordan has made significant progress since the 2014 Article IV consultation, but challenges are still pressing. The economy has proven resilient in the face of severe external shocks. The exchange rate peg remains an important anchor, reserves are comfortable, and the financial system is sound. The fiscal deficit has narrowed, while monetary policy has supported growth. However, Jordan’s performance has lagged other emerging markets, with growth below potential, high unemployment, and elevated public debt—and with regional conflicts and Syrian refugees continuing to weigh on social conditions, public finances, investment, and the current account.
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