Minister of State for Economic Affairs, Muhannad Shehadeh, underscored the "robust and multifaceted" political and economic nexus between Jordan and the United States, emphasizing the pivotal role of the bilateral Free Trade Agreement (FTA).He highlighted the FTA's positive impact, generating a $3.1 billion trade surplus for Jordan and facilitating a $5 billion two-way trade flow.Speaking at a forum hosted by the "Amman Group for Future Dialogues," Minister Shehadeh articulated Jordan's strategic intent to deepen this economic partnership across various verticals, with a target of escalating bilateral trade to $10 billion.This ambition aligns with leveraging dynamic shifts in the global trade landscape. He characterized Prime Minister Jafar Hassan's recent US visit as "constructive," citing productive engagements with key stakeholders within the US administration.Minister Shehadeh affirmed the Jordanian economy's sustained resilience and macroeconomic stability, notwithstanding significant headwinds from the external environment."The Jordanian Dinar remains robust, underpinned by record foreign exchange reserves exceeding $22 billion, providing 11 months of import cover, alongside a substantial strategic gold reserve," he stated, addressing global currency fluctuations.He reiterated that the US dollar's valuation is fundamentally driven by global supply and demand dynamics.The Minister emphasized the government's unwavering commitment to fostering a synergistic relationship with the private sector as a catalyst for economic expansion. This is evidenced by policy initiatives designed to cultivate a business-friendly investment ecosystem and encourage corporate social responsibility aligned with national development objectives.He further highlighted the government's conviction in the strategic importance of Islamic finance as a key enabler of capital formation and economic development, positioning it as a distinct financial paradigm. He announced the imminent launch of a tradable "Ijara Sukuk" (Islamic lease certificate) to further deepen Islamic capital markets.Minister Shehadeh elaborated on the government's citizen-centric economic strategy, prioritizing inclusive and sustainable growth beyond short-term profitability metrics. He reiterated the government's primary mandate to achieve growth trajectories that demonstrably reduce poverty and unemployment while enhancing aggregate factor productivity.He noted the cross-governmental Economic Modernization Vision as a core tenet of the government's agenda over the preceding seven months, complemented by 92 targeted economic policy interventions primarily aimed at streamlining processes for citizens and businesses. These measures have yielded tangible results, with the economy registering a 2.7% growth rate, exceeding the initial year-end projection of 2.3%.Minister Shehadeh underscored the imperative of export-led growth, noting the previous year's expansion in exports, with the services sector contributing approximately 50%. This growth was attributed to government incentives, including a 10-year export tax holiday and a reduced 5% income tax rate on export revenues, alongside customs facilitations aimed at bolstering domestic production for international markets.He highlighted key policy initiatives anticipated to materialize in the second and third quarters, including the extension of natural gas infrastructure to industrial clusters to enhance the competitiveness of Jordanian manufacturing through reduced energy input costs.The government has also focused on injecting liquidity into the financial system through the expedited disbursement of accumulated tax refunds and the resolution of long-standing tax disputes via penalty waivers – a strategic economic decision prioritizing market dynamism over purely accounting-based considerations, as evidenced by improved growth metrics and enhanced market liquidity.Minister Shehadeh affirmed the government's commitment to deploying allocated capital expenditure towards high-impact projects with significant output and employment multipliers. He noted the Prime Minister's consistent directive to expedite the implementation of budgeted projects and pursue new strategic investments, with a mid-year budget review slated for July. (ICE AMMAN)

Fonte notizia: petra news