Unemployment, inflation, water scarcity among Jordan’s top economic risks – JEF

AMMAN — The Jordan Economic Forum (JEF) on Tuesday released a report outlining the Kingdom's key economic challenges, drawing on the World Economic Forum’s Global Risks Report 2025.

The report highlighted growing concerns over unemployment and lack of economic opportunity, urging the government to accelerate its Economic Modernisation Vision to tackle these pressing issues. 

The forum stressed the urgent need for labour-intensive investment to generate sustainable employment opportunities, calling for faster implementation of economic policies that stimulate growth, attract investment, and foster economic and social stability, the Jordan News Agency, Petra, reported.

“Unemployment remains the biggest challenge facing the Jordanian economy,” the forum said. “While the government has taken positive steps in recent months, these efforts may not be sufficient to address the risks identified in the Global Risks Report 2025.”

While acknowledging recent government measures to strengthen economic stability and promote growth, JEF warned that efforts should be directed towards attracting investment in sectors capable of absorbing large numbers of workers.

The forum also cautioned that Jordan’s improved public debt risk rating does not necessarily indicate the resolution of deeper economic challenges. It urged continued structural reforms, an enhanced business environment, and a stronger focus on innovation and entrepreneurship to bolster economic resilience.

Water scarcity was another critical concern, with the report calling for greater investment in water security and environmental sustainability to stabilise vital sectors and support long-term development.

The findings also addressed regional geopolitical shifts and their impact on supply chains and energy markets, recommending that Jordan diversify its energy sources, strengthen regional integration, and invest in digital infrastructure to maintain competitiveness.

Emphasising the role of human capital development, the forum called for greater investment in training programmes, vocational education, and regulatory reforms to attract long-term investment in productive sectors. "These steps are essential for reducing unemployment and fostering economic and social equity."

small and medium-sized enterprises (SMEs) in productive sectors should be prioritised to enhance productivity and drive inclusive economic growth, the JEF said.

The 2025 Global Risks Report, based on a survey of over 900 experts across various sectors, identified global risks as uncertain events or conditions that could significantly impact countries and industries over the next decade. 

These risks span economic, environmental, technological, social, and geopolitical areas and are interconnected—meaning the occurrence of one risk could intensify others.

For Jordan, the report ranked unemployment and lack of economic opportunity as the top risks for 2025-2026, followed by inflation, economic recession, water scarcity, and public debt.

While the risk associated with public debt has dropped from second place in 2024 to fifth in 2025, suggesting possible improvements in debt management, JEF stressed that the underlying economic challenges remain unresolved.

The forum also said that Jordan must adopt comprehensive national and regional strategies to tackle these risks. It emphasised the need for greater economic flexibility, investment in sustainable sectors, and balanced economic growth to ensure the Kingdom’s long-term resilience.