Qatar’s inflation drops 1.15% as key costs fall 

RIYADH: Jordan’s economy is expected to grow 2.7 percent in 2025, further accelerating to 3.5 percent in the medium term, according to the governor of the country’s central bank.

Adel Sharkas made the comments in the wake of credit rating agency S&P Global stating that Jordan’s GDP expansion will be driven by the recovery of the tourism sector, as well as increasing trade relationships with Syria and Iraq. 

The central bank governor added that inflation in Jordan reached 2.2 percent in the first two months of this year and is expected to stabilize at 2 percent for 2025, the country’s news agency, Petra, reported. 

The growth aligns with the broader trend in the Middle East, with Saudi Arabia forecasting a gross domestic product expansion of 4.6 percent in 2025, and the Central Bank of UAE projecting the Emirates’ economy will increase by 4.5 percent this year and 5.5 percent in 2026.

Reflecting on the state of Jordan’s financial health, Sharkas said: “Our national economy has demonstrated exceptional resilience against challenges and high flexibility, enabling adaptation and limitation of consequences over the past five years, beginning with the coronavirus pandemic and subsequent consecutive external economic shocks.” 

He added that Jordan attracted foreign direct investments valued at $1.3 billion during the first three quarters of 2024. 

The CBJ governor further said that tourism income also jumped 22 percent in January compared to the same period last year. 

Developing the tourism sector is crucial for Jordan, as the country considers this industry pivotal for economic growth and job creation. 

Through the Jordan National Tourism Strategy 2021-2025, the country aims to attract international visitors with its archaeological and cultural heritage along with unique natural landscapes. 

In a ceremony on March 16, Jordan’s banking sector committed 90 million dinars ($126.92 million) to fund health and education projects over the next three years. 

Jafar Hassan, the country’s prime minister, said: “This banking sector that you represent has been a fundamental pillar supporting our national economy’s strength, stability and resilience throughout history.”

He added: “During a quarter century, this great development of our Jordanian banking sector has materialized, achieving advanced global ratings, particularly in financial strength and banking system solidity.”

In March, the World Bank said that it is assessing the financing of five projects aimed at supporting economic reforms, social protection, and entrepreneurship in Jordan, with a total potential investment valued at $900 million.

KARACHI: Khadeeja Manzoor haggled with a vendor at a busy market in Pakistan’s Karachi over the price of vegetables. The sight is not an unusual one in Pakistan, especially during the holy month of Ramadan, where people flock to fruit and vegetable markets in thousands daily to buy food items. 

Muslims break their fast with the evening iftar meal during the holy month of Ramadan, consuming dishes prepared with fruits and vegetables in large amounts. This triggers a surge in consumer spending significantly during the holy month, one that increases sales at grocery stores and marketplaces.

“Our spending increases during Ramadan,” Manzoor, 45, told Arab News. “They (actually) double because though the prices of vegetables have declined a bit, other things have become costlier,” she added. 

Pakistan has long grappled with an economic crisis that saw inflation surge to a historic 38 percent in May 2023. However, the government has since then achieved some economic gains, with the country’s monthly inflation rate dropping to 1.5 percent in February on a year-on-year basis.

Dry fruit seller Wasib Abbasi noted that people spent more on items such as Rooh Afza, a sugary drink considered a staple Ramadan diet, and dates during the holy month. This causes a surge in sales during Ramadan, he added. 

“Our sales remain normal during the first 15 days of Ramadan but significantly increase during the second half,” Abbasi, who runs a store selling dry fruits at the busy Empress Market, told Arab News. 

Financial analyst Muhammad Waqas Ghani agrees the increased demand for food items and the increased inflow of remittances to Pakistan during Ramadan supplements the country’s economic growth. He said Pakistan usually sees a rise of 20 percent in remittances during the holy month every year. 

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting its balance of payments. Overseas Pakistanis remitted $3.1 billion in February.

“Ramadan does have a significant economic angle. Demand rises in food, lifestyle, and other areas like footwear,” Ghani, the head of research at JS Global Capital Ltd., a commodities brokerage company, told Arab News. 

During Ramadan, commercial banks also deduct billions of rupees from people’s accounts on account of the annual Islamic charity, Zakat. 

Ghani said the circulation of Zakat funds among the masses also increases their purchasing power, which leads to more consumer spending. 

Atiq Mir, chairman of the All Karachi Tajir Ittehad (AKTI), a body of over 400 trade groups in the southern port city, described Ramadan as the “spring month” for traders and citizens alike in terms of both divine blessings and material gains.

“The way people come to bazaars with their children gives a good look,” Mir said, adding that trade “runs above normal” during the holy month.

“Given the size of its population, Karachi alone is a Rs100 billion market if people came out proportionately for Eid shopping only.”