(MENAFN- Qatar News Agency) The GDP of the Jordanian economy will see accelerated growth from 2.9% of last year to 3.6% in 2014, Qatar National Bank (QNB) Group said Monday. The number is likely to rise to 4.4% in 2015-2016 as growth in the private sector, coupled with lower energy prices, recovery in tourism and the normalization of mining exports give a boost to the economy. QNB Group released a statement today saying that the Jordanian economy will recover in coming years. However the long-term outlook is still below the economy's full potential. This is mainly due to political challenges such as the impact of Syrian refugees displacement to Jordan and the Jordanian government's budget deficit. The report said that support from the International Monetary Fund (IMF) and GCC countries have been helping the economy in its recovery, following the 2012 economic crisis. Syrian refugees displacement to Jordan remains a real challenge however; Jordan is the second biggest recipient of Syrian refugees according to the United Nations. It houses more around 600,000 refugees (which represents 9.1% of the total population of Jordan.) Domestically, the labor and housing markets are particularly affected, with the refugees putting downward pressure on wages and upward pressure on rents (most live in urban areas and not in camps). With over 44% of the refugees aged 18-59, the domestic labor force is expanding rapidly leading to pressures on the labor market. The report noted that the Jordanian government dealt well with the foreign exchange market pressures from the Syrian conflict the CBJ was forced to raise policy rates repeatedly in 2012. This tightening of monetary policy, combined with an improvement in external financial support (in the form of loans and grants), has helped to restore the confidence in the Jordanian Dinar (JOD) and led to a doubling of foreign exchange reserves in 2013. Going forward, these trends are likely to continue in the near term as higher appetite for JOD-denominated assets grows and overall investor sentiment towards the Jordanian economy improves further, thus spurring higher growth
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