Consumer Price Index (Inflation) Rises by 1.98% in First Half of 2025 - Jordan News
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Fitch Expects Interest Rate Cuts in Jordan Before End of 2025 - Jordan News
Fitch forecasts Jordan's GDP growth to accelerate to 2.8% by next year. The reopening of Syrian markets is expected to boost Jordanian exports and spur fixed investment. اضافة اعلان A recent international economic report showed that Jordan's economy outperformed expectations in the first quarter of 2025, prompting risk assessment agencies to raise their annual GDP growth forecast from 1.6% to 2.0% for this year. According to a report by Fitch Ratings, data from Jordan's Department of Statistics revealed an annual growth rate of 2.7% in Q1 2025, with a seasonally adjusted quarterly growth of 0.7%, consistent with the economic trend since early 2024. The industrial sector, which makes up approximately 17.7% of the GDP, was a key driver of growth, recording a 5.1% expansion—the highest since Q1 2008, the report stated. Data also showed that most economic sectors in Jordan saw notable growth in Q1 2025, despite regional challenges, aligning with the goals of the Economic Modernization Vision, which aims for gradual increases in growth rates. Sectoral Performance in Q1 2025: Agriculture: highest growth at 8.1%, contributing 0.45 percentage points to overall GDP growth. Electricity & Water: grew by 5.8%, contributing 0.08 points. Manufacturing: expanded by 5.1%, contributing 0.88 points. Social & Personal Services: rose by 3.4%, adding 0.27 points to growth. Impact of U.S. Tariffs Despite the positive growth revision, the report warned of a potential slowdown in economic activity starting in Q2 2025, due to expected fallout from U.S. protectionist trade policies. Following an announcement by President Donald Trump to impose reciprocal tariffs on goods beginning August 1, tariffs on Jordanian exports to the U.S. are anticipated to rise to 10–20%. This could negatively impact Jordan's trade balance, especially given the importance of the U.S. as an export market. Inflation and Monetary Policy The report projects average inflation for 2025 at just 1.6%, largely due to falling global energy prices. It also expects the Central Bank of Jordan to begin easing monetary policy in line with the U.S. Federal Reserve, cutting interest rates by 50 basis points, bringing them down to 6.00% by year-end. Positive Outlook for 2026 Looking ahead to 2026, Fitch anticipates GDP growth will accelerate to 2.8%, as the impact of U.S. tariffs wanes and consumer spending improves. The reopening of neighboring markets—particularly Syria and Iraq—is also expected to bolster exports and attract foreign direct investment, especially in industrial infrastructure. Unemployment is forecast to decline slightly to 22.3% by the end of 2026, while lower oil prices will further support household purchasing power. Risks Remain However, the report concludes by cautioning that downside risks remain. Rising regional tensions or more aggressive U.S. trade policies could lead to higher energy prices or reduced demand for exports—factors that may weaken Jordan's future economic outlook.
Ammon
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UK CPI inflation unexpectedly rises to 3.6% in June
Ammon News - Britain's annual rate of consumer price inflation unexpectedly rose to its highest in over a year at 3.6% in June, up from 3.4% in May, above economists' expectations in a Reuters poll for the rate to remain unchanged, official figures showed on Wednesday. British inflation has risen steadily since touching a three-year low of 1.7% last September, and in May the Bank of England forecast it would peak at 3.7% in September - almost twice the central bank's 2% target. June's reading from the Office for National Statistics took the annual CPI rate to its highest since January 2024. Higher transport costs, especially motor fuels, were the biggest contributor to the rise in the inflation rate between May and June, the ONS said. Sterling rose slightly against the dollar after the data, which may put pressure on the BoE not to cut interest rates at its next meeting in August. Previously, April brought a particularly sharp jump in inflation to 3.5% due to rises in regulated energy and water tariffs, a spike in air fares, and upward pressure on the cost of labour-intensive services from a rise in employment taxes and the minimum wage.
Jordan News
6 days ago
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Global Gold Prices Rise — Details - Jordan News
Global Gold Prices Rise — Details Gold prices rose on Tuesday, supported by growing global trade tensions that boosted demand for safe-haven assets, as investors awaited the release of U.S. Consumer Price Index (CPI) data later in the day — a key indicator for the Federal Reserve's future interest rate path. اضافة اعلان The spot price of gold increased by 0.5% to $3,359.01 per ounce as of 06:35 GMT, while U.S. gold futures rose 0.3% to $3,368.20 per ounce. Tim Water, Chief Market Analyst at KCM Trade, stated: "Gold has historically proven to be a preferred destination during times of rising trade tensions. The move toward $3,350 reflects that pattern. However, elevated U.S. bond yields and a strong dollar are significant headwinds. For gold to make further progress toward $3,400, we'd likely need a pullback in either the dollar or yields — absent any intensified geopolitical developments." U.S. President Donald Trump had threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting August 1st, if a trade deal is not reached. The U.S. inflation data for June is expected at 12:30 GMT today. Economists surveyed by Reuters forecast the annual inflation rate to rise to 2.7%, up from 2.4% in May, while core inflation is projected to climb to 3.0% from 2.8%. Water added: 'Gold typically thrives in a low interest rate environment and is considered a safe haven during times of economic uncertainty.' As for other precious metals: Spot silver rose 0.5% to $38.32 per ounce, marking its highest level since September 2011. Platinum gained 1.1% to $1,379.22, Palladium increased 0.5% to $1,200.01.
