JSF recommends fiscal policy changes, more support for National Aid Fund

AMMAN — The Jordan Strategy Forum (JSF) on Tuesday said that real GDP growth rates during the recent years have been modest, adding that unemployment rates in Jordan are high, expecting unemployment rates to rise in the final quarter of 2020.

In a policy paper titled “2021 State Budget between COVID-19 and resuming growth cycle”, the JSF said the ratio of gross fixed capital formation to GDP in Jordan is low, in comparison with the other countries. The paper also expected that the ratio of public debt to GDP will rise to 110.6 per cent.

The forum called for allocating additional resources for social services (the National Aid Fund), as well as reconsidering cutting sales tax on domestic good, while increasing it on imported ones.