AMMAN: The International Monetary Fund on Friday said that Jordan’s initiatives to reduce its energy dependency could have substantial macroeconomic implications, but will crucially depend on the level of international oil prices in the next decade.
The IMF has published a working paper on Jordan titled: “New Energy Sources for Jordan: Macroeconomic Impact and Policy Considerations”, in which it affirmed that the Kingdom imports 96.1 percent of its energy needs, compared with 94.1 in 2000.
The paper also found that the percentage of energy imports to gross domestic product (GDP) jumped to 16.2 percent in 2013, from 7.5 percent in 2000. It also noted that when gas supplies from Egypt started fluctuating in 2011, Jordan had to resort to importing more expensive fuels. Further, the IMF working paper’s abstract noted that significant uncertainties remain regarding the feasibility of the initiatives and their potential fiscal costs, including from contingent liabilities, could be very large.