Jordan fiscal risks jump amid spending surge

Jordan’s government finances indicator slipped this week, as economists participating in Euromoney’s Country Risk survey registered concerns about the sustainability of the country’s finances.

The score fell by 0.1 points (out of 10) in December, leaving the country’s score of 3.3 points well below the Gulf Cooperation Council (GCC) average of 7.5 points.

Public debt is a key concern among analysts participating in ECR’s survey, with some believing the Jordanian government’s rising debt is reaching unsustainable levels.

An ECR expert based in the Gulf says: “The energy crisis and Arab Spring have boosted spending unsustainably and Jordan has become far too dependent on grants from the GCC, which may not continue at the expected levels for long.”

Jordan’s government debt has soared to 70% of GDP, as of November, while the government holds a deficit of 6% of GDP.

This article was originally published by Euromoney Country Risk.