On Tuesday The Governor of the Central Bank, Dr. Adel Al-Sharkas, affirmed that the Jordanian economy is moving steadily towards recovery, supported by monetary and financial stability and a high level of foreign currency reserves amounting to $17.3 billion, and this contributed to raising the expectations of the growth of the Jordanian economy for the year 2022 to 2.7% compared to With the previous expectations for the same year amounting to 2.4%, and maintaining it at a level of 2.7% during the years 2024 and 2025, despite the International Monetary Fund's reduction in its forecasts for the growth of the global economy.
During a lecture he delivered at the Royal Jordanian National Defense College for scholars in the 20th Defense Course, entitled "Managing Financial and Economic Crises", in the presence of the College Commandant, Brigadier General and members and staff of diercting
The positive outlook on the Jordanian economy and the Jordanian government's commitment to implementing a wide package of structural reforms, especially within the framework of the economic modernization vision and the public sector modernization roadmap, prompted Moody's to raise Jordan's long-term sovereign credit rating from a stable B1 level to a positive B1, at a time when In which the agency downgraded the credit rating of more than 20 countries whose economies are experiencing a state of uncertainty, and this constitutes a clear message from the most important international financial institutions, on the effectiveness of the macroeconomic policies that Jordan applies to face the current challenges, and the stability of the macroeconomic, financial and monetary environment in the Kingdom.
And the Governor of the Central Bank indicated that the matter is supported by the continuous improvement in many economic indicators recorded in 2022, as the national economy achieved a growth of 2.7% during the first three quarters of 2022, compared to 2.1% during the same period in 2021, driven by continuous growth. Recovery in all economic sectors. On the other hand, external demand for goods and services showed further improvement, as reflected in the increase in tourism income during 2022, by 110.5% compared to its level in 2021, thus exceeding its level in 2019 (pre-pandemic).
The sharkas explained that the national exports increased by 40.7% during the first ten months of 2022, compared to an increase of 18.1% during the corresponding period of 2021, and the increase in the volume of foreign direct investment incoming to the Kingdom during the first three quarters of 2022, to record 629.3 million dinars. Or 2.5% of the output compared to 325.1 million dinars, or 1.4% of the output during the corresponding period of 2021, and new investments constitute about 78% of these investments, and the momentum of the strong performance of monetary indicators continued during 2022, as the balance increased The total deposits with licensed banks during the first eleven months of 2022 increased by 6.5%, and the credit facilities granted by licensed banks during the same period increased by 8%.
The Governor of the Central Bank affirmed that in light of what the world is currently witnessing from a wave of inflation due to pressures on supply chains and the deepening state of uncertainty in the world, most central banks tended to tighten their monetary policies, faster than expected, to contain these pressures. During the year 2022, by raising interest rates on all monetary policy tools, with the aim of strengthening the pillars of monetary and financial stability in the Kingdom, and in particular preserving the exchange rate of the dinar, in addition to controlling the inflation rate and preserving the purchasing power of real incomes for citizens.
During the lecture sharkes reviewed the concept of financial and banking crises and the most prominent financial and economic crises that Jordan and the world faced during the past decades, indicating how to deal with these crises globally and locally, and explaining how Jordan, in particular the Central Bank, faced and managed the Corona pandemic crisis, which represented a major challenge for the industry. The economic decision in the Kingdom, however, the Central Bank of Jordan succeeded in confronting it, through proactive, deliberate and decisive interventions that had a great impact in reducing the negative consequences of the pandemic, explaining the most important challenges facing the global economy at the present time and the measures of the Central Bank to confront them and limit their consequences on the national economy.
At the end of the lecture, an extensive discussion took place during which the lecturer answered the questions and inquiries of the attendees.