World Bank emphasises Jordan's resilient economic growth, commitment to women's empowerment

AMMAN — The World Bank on Tuesday stressed that Jordan's economic trajectory demonstrates resilience amid global and domestic challenges, citing a 2.7 per cent economic growth in the first half of this year, driven by strong growth in the services sector and recovery in agriculture.

In its Jordan Economic Monitor, Fall 2023: Building Success, Breaking Barriers - Unlocking the Economic Power of Women in Jordan, the World Bank said that Jordan is actively implementing the women's empowerment strategy outlined in the Economic Modernisation Vision 2033 and the National Strategy for Women 2020-2025. The goal is to institute vital reforms aiming to double women's participation in the workforce over the next decade, Jordan News Agency, Petra, reported. 

The report forecasts the current general growth rate to reach 2.6 per cent and the current account and public finance deficit to decrease to 6.6 per cent and 5.2 per cent, respectively. Inflation is also projected to decline to around 2.4 per cent.

The World Bank also underscored that as Jordan navigates challenging economic conditions and persistent shocks, sustaining efforts to unlock women's economic potential is a crucial factor in supporting the Kingdom's long-term development.

Regional Director for the Mashreq Department at the World Bank Jean-Christophe Carret said that a comprehensive, multi-sectorial approach is needed to facilitate women's access to the labour market. This includes creating an empowering legislative environment, implementing supportive policies, investing in education and skills aligned with labour market needs, improving access to quality childcare services, safe transport and communications networks and expanding access to finance and entrepreneurship.

The report also highlighted the significant decline in the annual inflation rate in 2023, continued recovery in travel revenues and the decline in global prices for primary commodities, all contributing to addressing imbalances in public finances and external accounts.

The report also stated that Jordan's monetary policy is "cautious," with the Central Bank of Jordan actively tightening monetary policy, positioning Jordan among the few countries in the region with positive real interest rates.

Hoda Youssef, lead economist at the World Bank, highlighted Jordan's cautious approach in overcoming challenges but noted that deep structural restrictions still impact the economy. She added that a key challenge for Jordan is job creation, where economic growth has not been yet translated into increased employment, especially in sectors with higher production rates. Youssef also emphasised the essential need to put public debt on a downward trajectory to ensure the long-term sustainability of public finances and create a supportive economic environment for future generations.