Conducive economic environment vital for recovery, sustainable growth — experts

AMMAN — Economists’ views show that in case “the same economic approaches continue to be taken, the Kingdom’s economic performance will only get worse”.

On Thursday, economist Mazen Marji told The Jordan Times that Jordan’s economy has suffered a devastating downturn as all other countries amid the ongoing pandemic.

However, even prior to the pandemic, the Jordanian economy had suffered major challenges, such as poverty, unemployment and slow economic growth. The compound effect of the pandemic and the pre-existing challenges resulted in “a grave economic reality”.

“The national debt of Jordan has reached JD33 billion, and the economic approach and structure of the country are not conducive to sustainable economic growth,” Marji said.

Unemployment among Jordanian youth reached 50 per cent and the unemployment rate currently stands at 25 per cent, according to Marji, noting four years ago poverty rates reached 14.7 per cent and as a result of the pandemic this number has been on the rise.

Economist Husam Ayesh said that the current deteriorating economic performance can be attributed to the Kingdom’s economic over-dependence on foreign aid and grants, high indebtedness, high unemployment rate and the high cost of living, in addition to the constantly changing regulations, measures and governments.

Furthermore, he pointed out that the government needs to pay attention to achieve an economic revival to attract investments to the country.