Kingdom’s GDP growth remains stable amid regional crises — World Bank

AMMAN — The World Bank have emphasised the resilience of Jordan’s gross domestic product (GDP) growth amidst regional and global crises.

In its latest report, Global Economic Prospects, the World Bank projected that Jordan’s GDP growth is expected to reach 2.5 per cent in 2024 and 2.6 per cent in 2025. 

The report also stressed that the ongoing war on Gaza could negatively impact Jordan’s tourism sector, adding that the unrest in the Middle East has increased uncertainty around GDP growth forecasts in the region.

Assuming the war does not escalate, GDP growth in the Middle East and North Africa (MENA) region is expected to pick up to 3.5 per cent in 2024 and 2025, according to the report. The report also said that the average growth rate in Jordan over the past decade was around 2.5 per cent.

Speaking to The Jordan Times on Tuesday, Economist Awni Daoud said that the Jordanian economy has maintained a stable growth rate, thanks to fiscal policies that have prevented an increase in the burden on citizens by increasing local revenues through combating tax evasion.

He also underscored the monetary policy that has maintained the stability of the Jordanian dinar and the inflation rate, which is considered the lowest in the region.

Daoud noted that government estimates suggest that growth will also be around 2.6 per cent this year. “These numbers are good but they are unable to create more jobs and attract more investments However, in light of circumstances such as the Corona crisis and the Russian-Ukrainian war, in addition to the aggression against Gaza, they maintain stability in Jordan,” he added.

Economist Wajdi Makhamreh said, “Jordan cannot achieve the growth rates expected by international institutions if the Israeli aggression on Gaza continues”. He also underscored the support of the World Bank and the International Monetary Fund for Jordan, which has contributed to stability in growth.

Makhamreh also said that Jordan is exposed to many crises, including the Syrian refugee crisis and the Corona crisis, in addition to the Gaza crisis. As these crises continue, expectations are that Jordan will not achieve the expected goals for growth rates.