Jordan’s Economy Exhibits Robust Upward Trajectory in 2023 Despite Global Headwinds

Amman: In 2023, amidst a landscape marked by global economic headwinds, Jordan’s national economic indicators demonstrated a bullish trend, underscoring resilience and robust growth.

Economic experts, acknowledging this positive trajectory, have emphasized the necessity of leveraging these achievements, despite persisting challenges.

They advocate for the implementation of adaptive and agile strategies to mitigate the impacts of unpredictable external factors, notably the effects of Israeli military actions in Gaza.

Engaging with the Jordan News Agency (Petra), these specialists stressed the importance of tackling pivotal challenges, particularly in the energy and water sectors.

Their recommendations extend to enhancing the market presence of locally produced goods, amplifying export initiatives, and incentivizing foreign investment influx, aligning with the Economic Modernization Vision’s objectives.

Former Deputy Prime Minister Jawad Anani reflected on the national economy’s resilience, noting its grad
ual recovery from external shocks in 2023.

This rebound followed significant challenges, including the COVID-19 pandemic and the geopolitical turbulence of the Russian-Ukrainian conflict.

Anani attributed this positive shift to the government’s strategic and problem-focused orientation, especially post the initiation of the Economic Modernization Vision Program.

He projected that, barring the market disturbances caused by the Israeli aggression in Gaza, the economic growth rate could potentially eclipse 2.8 percent.

Looking ahead to 2024, Anani underscored the critical need to address overarching challenges, particularly in key sectors like energy, water, and electricity.

He advocated for accelerated implementation of relevant projects and revitalizing faltering institutions to enhance public benefit, production capacity, and job creation.

Anani also emphasized stimulating private sector investment and identifying lucrative investment opportunities, highlighting the importance of reducing bureaucratic b
arriers to facilitate administrative reform.

Director General of the Association of Banks, Maher Mahrouk, acknowledged the continuation of economic improvement into 2023, attributing it to the sectoral recovery from pandemic aftereffects, especially in tourism. He noted the substantial growth in the tourism sector compared to 2019 levels.

Mahrouk lauded the Central Bank of Jordan’s monetary policies for maintaining monetary stability and effectively managing inflation rates, positively impacting the nation’s monetary reserves. The Kingdom’s foreign reserves, he noted, stood at around $17.4 billion, surpassing the globally accepted standard for import coverage.

Mahrouk also highlighted the slight decrease in unemployment rates and the boost in exports as indicators of broader economic improvement, necessitating their sustenance and enhancement.

Hossam Ayesh, an economic expert, remarked that national economic indicators continued to show recovery and improvement, driven by factors such as improved public r
evenues, increased exports, decreased imports, and a reduced budget deficit.

Ayesh underscored the tourism sector’s significant achievements in three quarters of the year, with revenues nearing pre-pandemic levels. This, he suggested, reflected major development in tourism revenues, overnight stays, and visitor numbers to the Kingdom.

During the past ten months of 2023, the Kingdom’s tourism income grew by 34.7 percent, reaching $6.4 billion, driven by an increase in tourist numbers, which reached 5.560 million tourists, marking a growth rate of 34 percent.

Ayesh continued that the economic performance was accompanied by numerous economic agreements and projects, and the achievement of the first phase of the economic modernization vision.

He anticipated some negative impact on the last quarter’s indicators of 2023 due to the repercussions of the Israeli aggression on Gaza.

Investment and business advisor Muhammad Ali Qaryouti stressed the importance of focusing on two key factors at this stage: the trade
balance, reflecting Jordan’s foreign trade in terms of exports and imports, and the gross domestic product and its indicators.

He added that a one-billion-dinar decrease in the trade balance deficit in the last ten months of 2023 confirmed Jordan’s increased self-reliance and export-driven growth.

The trade balance deficit decreased by 9 percent, reaching JD8.142 billion, compared to JD8.948 billion for the corresponding period last year.

Qaryouti also noted the diversification in Jordanian exports and the significant decline in imports of crude oil and its derivatives, signifying a strategic shift towards alternative energy sources.

He mentioned the decrease in grain imports as an important indicator of the country’s food security strategies and fiscal prudence.

The Kingdom’s imports decreased rapidly from the beginning of 2023 until the end of October, by 6.0 percent, to reach JD15.606 billion, compared to JD16.594 billion for the same period last year. The coverage ratio of total exports to imports re
ached 48 percent, up from 46 percent during the same period last year.

Qaryouti highlighted a 2.7 percent growth in the gross domestic product in the first half of 2023 compared to the same period in 2022.

He noted that most productive sectors, including agriculture, extractive industries, manufacturing, transportation, and others, recorded growth during the second quarter of 2023.

He observed that Jordan, through the strength of its national economy and financial and monetary policy led by the Central Bank, succeeded in maintaining an inflation rate of 2.31 percent, one of the lowest rates globally.

Qaryouti mentioned the country’s progress towards self-sufficiency in various food commodities and highlighted positive aspects of the 2024 budget estimates, including expected growth rates and inflation targets.

He affirmed Jordan’s capability to withstand international economic and geopolitical challenges and emphasized the importance of opening new markets for Jordanian products.

Alaa Bashaira, a profess
or at the Hashemite University, discussed the global economic impact of the COVID-19 crisis, particularly the disruption of global supply chains and resultant inflationary pressures.

She praised the Central Bank’s measures in maintaining financial stability and its inflation-curbing policies, such as incrementally raising interest rates in line with the US Federal Reserve.

Bashaira advocated for increased efforts to attract foreign investments and boost the private sector’s role in stimulating economic growth, aligning with the 2033 Economic Modernization Vision.
Source: Jordan News Agency