Economic experts attribute Kingdom’s widening trade deficit to global trends

AMMAN — Economic experts attribute Jordan’s widening trade balance deficit during the first quarter of 2022 to global factors related to inflationary pressures, rising food and oil prices and the repercussions of the Russia-Ukrainian war.

The “soaring” shipping costs, insurance for imported items during the first quarter, as well as the government’s trends to increase purchases of basic commodities, notably wheat, have increased the value of imports, experts said in press remarks to the Jordan News Agency, Petra. 

To control prices, the experts recommended optimising fiscal and monetary policies, implementing the partnership agreements signed with the UAE and Egypt, utilising the opportunities in the mining sector, trimming or abolishing sales tax on the rising commodity prices, and expanding the number of National Aid Fund beneficiaries. 

The Kingdom’s imports grew by 28.6 per cent in the first quarter of 2022 to hit JD4.276 billion, compared with JD3.326 in the same period in 2021.

The Consumer Price Index (CPI), a measurement of inflation, increased by 2.62 per cent in the January-March period of this year to reach 104.58, compared with a CPI of 101.91 in the same period in 2021.