Experts call for curative economic measures sans lockdowns

AMMAN — The pandemic has further placed pressure on the Kingdom’s already “fragile” economy, according to economists.

“The unemployment rate formula is based on certain inputs and information, but now with the pandemic, another formula should be found that would calculate the unemployment rate caused by COVID-19 to make matters more transparent,” economist Husam Ayesh told The Jordan Times on Tuesday.

The unemployment rate in Jordan during the fourth quarter of 2020 stood at 24.7 per cent, increasing by 5.7 per cent, according to the Department of Statistics.

Ayesh said that “the government needs to clarify what is really meant by economic recovery”, noting that official data and statistics show that one out of four Jordanians are unemployed, “but in reality, one out of three Jordanians are jobless”.

“About 400,000 persons have experienced pay cuts amid the pandemic, and are likely to be unemployed in the coming period,” Ayesh said, noting that currently one of the things the government may resort to is a total lockdown, which would reversely affect all sectors, increase poverty and unemployment rates.

The uncertainty due to the continuous lockdowns “will for sure directly affect the economic process and the social situation in the Kingdom”, he noted.

The state budget should be re-examined and an emergency draft should be implemented based on the epidemiological situation, he added.

“People cannot afford to bear the burden of another lockdown, if there is no social protection,” Ayesh said.

He noted that Jordan has faced economic challenges, but this time it is different, therefore the tools and instruments used to solve the economic crisis need to be different and precise.

In remarks to The Jordan Times, economist Mazen Marji said that unemployment is one of the most significant problems affecting Jordan, noting that the pandemic is not the only reason for the Kingdom’s economic situation.

“Misguided policies in the area of investment, the complexities related to the taxation system and debt are among the many reasons for the fragile economic situation and the lack of economic advancement,” Marji said.

Debt is increasing day by day, and has grown to JD33 billion, Marji added, pointing out that “there is inability and incapacity to solve the problems, and the measures are only part of the formalities and not real”.

The current economic situation in Jordan is “unclear”, according to Marji. Each year there are between 70,000-80,000 job seekers, “but the public and private sector can only employ half of them and maybe less”, he said.