Departure from usual path key for real economic growth, say economists

AMMAN — During this time, Jordan is in need to depart from its usual economic system, to generate real economic growth, according to economists.

In an interview with The Jordan Times on Monday, economist Husam Ayesh indicated that economic participation is less this year when compared with the previous year, and “the reality people in Jordan are living is due to high taxes and prices, and other internal and external factors”.

Economic indicators are important to a certain degree, however the overall public sense of the socio-economic conditions is “more genuine and precise”, according to Ayesh who pointed out that “the reform process should be continuous and not transient”.

In the 2022 edition of Jordan Economic Monitor (JEM), the World Bank said that the Kingdom’s economy Jordanian is predicted to grow by 2.1 per cent in 2022.

“A more assertive investment-enabling reform agenda would help Jordan better manage turbulence and uncertainty,” according to JEM.

The bank added that Jordan’s economy achieved “a relatively strong rebound”, registering 2.2 per cent growth in 2021, due to having supportive monetary and fiscal policies that the government resorted to.

However, the recovery of some subsectors, particularly contact-intensive services has continued to stay behind pre-pandemic level, leading to weak recovery in employment, particularly among young Jordanians.

On the same note, Ayesh commented that there might have been some progress in certain sectors that do not have a direct effect on citizens or improving their living conditions.

“To improve the economic mood in Jordan, the way economic solutions are generated should be reviewed and new strategies should be considered as well,” according to economist Mahmoud Abdullah.

In the context of global inflation and weaker economic growth, it is urgent to ensure fiscal stability and take into account citizens’ needs, Abdullah told The Jordan Times on Monday.