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Jordan Economic Monitor - Fall 2021 : En Route to Recovery (English)

Jordan’s economy is showing a healthy recovery following a moderate contraction of 1.6 percent in 2020. Notwithstanding the restrictive pandemic measures, the economy managed to grow by 1.8 percent in the first half of 2021. Meanwhile, accommodative monetary policy by the Central Bank of Jordan (CBJ) as well as fiscal policy, continued to play an active role in supporting the economy during the pandemic, while inflation has remained low. Yet, the pandemic has left deep scars on Jordan’s labor market, exacerbating unemployment challenges, particularly for females, and the youth, which remained at an elevated level. Moreover, Jordan’s external accounts has been under pressure, reflecting the combined impact of unfavorable terms of trade, improved domestic demand and continued slack in travel receipts. Despite these pressures, the Central Bank of Jordan has been able to build up its gross foreign reserves during the first nine months of 2021, on the back of timely donor support. Accelerating global recovery, improved vaccine rollouts and near full reopening of the domestic economy are considered major drivers for this year’s growth. The World Bank projects Jordan to grow by 2.2 percent in 2021. Nevertheless, downside risks remain significant, including uneven global recovery, another potential COVID-19 wave, as well as slow recovery of international tourism. Going forward, it is critical for Jordan to enhance domestic vaccination level, balance high quality fiscal adjustment with reforms to attract private investment and improve productivity to enable a resilient recovery that can help boost inclusive and sustained growth and job creation.

Details

  • Document Date

    2021/10/01

  • Document Type

    Report

  • Report Number

    166896

  • Volume No

    1

  • Total Volume(s)

    2

  • Country

    Jordan,

  • Region

    Middle East and North Africa,

  • Disclosure Date

    2021/12/16

  • Disclosure Status

    Disclosed

  • Doc Name

    Jordan Economic Monitor - Fall 2021 : En Route to Recovery

  • Keywords

    Public Transportation; terms of trade shock; small and medium size enterprise; monetary policy; net foreign asset; real gdp; financial market participant; free trade agreement; balance of payment; open market; free trade area; external affairs; foreign investment flow; per capita term; bus rapid transit; net domestic assets; change in employment; changes in policy; public debt service; high unemployment rate; electricity power; renewable natural resource; nonrenewable natural resource; foreign direct investment; current account imbalance; domestic revenue collection; public transit service; private sector credit; current account deficit; privileges and immunity; downside risk; foreign reserve; human capital; industrial sector; transportation service; government service; global economy; transportation infrastructure; output gap; natural capital; export performance; external account; government revenue; domestic demand; silver lining; firm exit; regional economy; distribution list; public attention; reserve adequacy; transport economist; trade deficit; transport specialist; jordanian dinar; resident representative; budget revenue; oil wealth; transportation challenge; global context; noncommercial purposes; consumer good; Travel Receipts; global debt; gross debt; domestic policies; Job Creation; consumer goods; aid recovery; subsidiary right; support measure; donor inflows; liquidity support; agriculture sector; fiscal policy; good performance; Fiscal policies; first year; fiscal space; inflation level; core inflation; Financial Sector; population share; pandemic start; transport share; global food; base assessment; construction permit; factor growth; money supply; Natural Resources; financial flow; donor support; national reserves; current expenditure; asset category; supply side; youth

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Citation

Jordan Economic Monitor - Fall 2021 : En Route to Recovery (English). Jordan Economic Monitor Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/265631639429108552/Jordan-Economic-Monitor-Fall-2021-En-Route-to-Recovery