European Bank forecasts slow growth in Jordanian economy
Date
5/16/2024 4:38:23 AM
(MENAFN) In the recent release of the Bank's Regional Economic Prospects report, Jordan finds itself at a critical juncture, with projections indicating a slight deceleration in economic growth to 2.4 percent for the current year, down from 2.6 percent in the previous year. This shift is attributed primarily to the indirect ramifications of the recent Zionist aggression on Gaza, which have rippled through various sectors of Jordan's economy, leading to a downturn in tourist arrivals, diminished investment flows, and subdued domestic consumer spending amidst uncertainties in the regional economic landscape.
Tourism, a cornerstone of Jordan's economy, has borne the brunt of these challenges, experiencing a significant 4.9 percent decline in income, totaling 1.5 billion dinars compared to the same period last year. The impact is further underscored by preliminary data from the Central Bank, revealing a 2.6 percent drop in tourism income for April, amounting to approximately 375 million dinars.
Despite the prevailing challenges, there exists a glimmer of optimism within the report, suggesting a potential economic rebound in the forthcoming year contingent upon improvements in geopolitical conditions across the region. With a hopeful outlook, the report envisions a resurgence in economic growth, targeting a rate of approximately 2.6 percent by the end of the year.
However, the shadow of high unemployment continues to loom large over Jordan, particularly among women and youth, with alarming rates of 29.8 percent and 42.4 percent, respectively. While there was a slight uptick in inflation towards the end of the preceding year, March witnessed a downturn. Nevertheless, the cumulative inflation index for the initial third of the current year has seen a 1.61 percent rise compared to the same period last year, falling short of the government's projected inflation rate of 2.7 percent for the year, as per data from the Department of Statistics.
As Jordan endeavors to navigate through these turbulent economic waters, the report emphasizes the urgency of addressing underlying structural challenges and fostering an environment conducive to sustainable growth.
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