Jordan's economic growth slows amid regional tensions, recovery expected in 2024 — World Bank

AMMAN — The World Bank's latest semi-annual report on economic developments in the Middle East and North Africa, titled "Growth in the Middle East and North Africa," highlighted the negative impact of Israeli aggression on the Gaza Strip on Jordan’s economy. 

The report indicated that since October 2023, Jordan has faced economic challenges, particularly a decline in tourism revenues and public finances.

According to the report, Jordan's economic growth is expected to slow to 2.4 per cent this year, with a rebound projected for next year, as the growth rate is anticipated to rise to 2.6 per cent.

The World Bank introduced an innovative measure in the report, assessing the dispersion of views among private sector forecasters to gauge uncertainty levels, according to the World Bank's website.

The report also identified key opportunities for countries in the region to achieve inclusive growth more rapidly by accelerating reforms, including rebalancing the roles of the public and private sectors, improving workforce talent allocation, closing the gender gap, and fostering innovation.

The report also projected that inflation in the Kingdom is expected to drop to 2 per cent this year, with a slight increase expected to 2.2 per cent in the following year.

Economist Waseem Hussein noted that the expected decline in inflation would provide temporary relief for consumers but cautioned that the predicted modest increase next year indicates persistent economic hurdles. 

Hussein also said, "The report shows that we should remain cautiously optimistic about the country's potential for recovery and growth, provided strategic reforms are implemented effectively."

Economic analyst Tawfiq Manaseer said, "There are always pathways to recovery if strategic reforms are prioritised, even amid ongoing challenges." 

Manaseer stressed the need for Jordan to develop a more resilient economic framework to withstand external shocks, which aligns with the objectives of the Economic Modernisation Vision.