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Jordanian Economy to Grow 3% to 4% This Year, World Bank Says

Jordan’s economy may grow between 3 percent and 4 percent this year, said Sri Mulyani Indrawati, one of three managing directors at the World Bank.

“I am not expecting up to the 5 percent growth, but something between 3 and 4 percent,” Indrawati told reporters in Amman late yesterday.

The World Bank approved last month a $250 million loan to Jordan to aid the nation in overcoming economic difficulties. Jordan’s economy was hurt by increasing food and fuel prices as tourism dropped 16 percent, remittances from expatriates fell 3 percent and foreign direct investment declined 32 percent last year due to regional unrest, the World Bank said in a Jan. 26 statement.

Jordan, one of the smallest economies in the Middle East, relies on foreign investment and grants to support its budget and current-account deficits. The government has increased public salaries and subsidies since pro-reform protests broke out as part of last year’s regional turmoil.

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