Publications

While economic performance was strong in many ways for several years, Jordan is now facing significant external and fiscal vulnerabilities stemming largely from a negative shock to its energy sector. Repeated and extensive disruptions to the flow of natural gas from Egypt and high oil prices have resulted in imports of expensive fuel products for electricity generation, and added to the already high public debt as the national electricity company (NEPCO) incurred large losses. The rising energy import bill led to significant losses in central bank reserves during the first half of the year. More recently, these losses have been exacerbated by an increase in dollarization. Jordan’s external position has also been affected by the global downturn and regional uncertainties.