publish date 2023-01-19 15:22:00
The World Bank confirmed that, despite the challenging global and local environment, the pace of growth accelerated in Jordan during the first half of 2022, reaching 2.7 percent, driven by a strong recovery in tourism, the full reopening of the economy, and an improvement in the level of exports.
In a report entitled: “Maximizing the Development Impact of Public Investment,” the World Bank added that the recovery of growth was only modestly reflected in the indicators of the Jordanian labor market, stressing the need to accelerate the pace of structural reforms to address the challenges that have long stood in front of growth led by the private sector. Supporting the economic inclusion of women, youth and other categories of workers in the formal labor market.
The report pointed to the deterioration of the external economic conditions due to the food and fuel crises in the world.
He explained that Jordan witnessed strong growth in its exports (44 percent in the first half of 2022), but the high import bill and the widening current account deficit led to continued pressure on the balance of payments, and inflation reached its highest level since 2018, but it is still under control compared to other countries. similar in the area.
In terms of public finances, he explained that although the collection of domestic revenues continued to improve as a result of the economic recovery and efforts to expand the tax base, the increase in revenues was outweighed by a greater increase in the level of public spending.
Jean-Christophe Carré, Regional Director of the Mashreq Department at the World Bank, said, “The Jordanian economy has been severely affected by the challenging global context, particularly the rise in global commodity prices. In an effort to increase resilience and support economic recovery, the Jordanian government has adopted several measures to mitigate negative impacts on consumers and businesses, especially families and workers most in need. However, accelerating the pace of reforms is critical in the future to unleash Jordan’s growth potential and create inclusive job opportunities for all, especially women and youth.”
The report recommended that measures at the level of domestic policies in the future should focus on building the ability to withstand challenges and withstand the effects of global risk factors, by accelerating the pace of structural reforms and improving the sustainability of public finances in the long term. This requires easing pressures on public finances by state-owned enterprises, especially in the energy and water sectors. And adopting deep reforms in the labor market to overcome the fragmentation of this market and unleash the potential of human capital.
The special analytical chapter of the report highlights the role of public investment as an engine of growth, with a focus on recent investment trends, and the efficiency and effectiveness of capital spending. This is particularly important given the limited space available in Jordan’s public finances.
Commenting on the report, Dr. Huda Youssef, Senior Economist at the World Bank’s office in Jordan, said: “Jordan has made significant progress in improving the institutional and implementation framework for public investment. Given the importance of public and private investments to achieve Vision 2033, it will be of great importance to maximize the efficiency of public investments. This requires long-term strategic planning based on realistic financing assumptions.”
She said, with Jordan highly exposed to the risks of climate change and harsh weather conditions, integrating climate considerations into public (and private) investments would enhance the Kingdom’s achievement of its climate goals and encourage the transition towards a greener and more environmentally friendly economy, in line with the vision of economic modernization for the year 2033.
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Source : اخبار الاردن