Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence

The global economy continues to reel from the COVID-19 (coronavirus) shock. The initial economic impact of COVID-19 on global output is projected to be far more devastating than the disruptions observed during the peak downturn of the global financ...

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Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/411101615477814784/Jordan-Economic-Monitor-Fall-2020-Navigating-through-Continued-Turbulence
http://hdl.handle.net/10986/35277
id okr-10986-35277
recordtype oai_dc
spelling okr-10986-352772021-04-23T14:02:19Z Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence World Bank ECONOMIC GROWTH LABOR MARKET PUBLIC FINANCE FISCAL TRENDS PUBLIC DEBT BALANCE OF PAYMENTS MONETARY POLICY INFLATION ECONOMIC OUTLOOK PENSIONS SOCIAL INSURANCE PUBLIC SPENDING TAXATION INCIDENCE The global economy continues to reel from the COVID-19 (coronavirus) shock. The initial economic impact of COVID-19 on global output is projected to be far more devastating than the disruptions observed during the peak downturn of the global financial crisis of 2007–09. Across theworld, lockdowns and mobility restrictions meant to control the spread of virus caused a significant slump in consumer spending and production during the first half of 2020. This in turn created substantial challenges for labor markets worldwide and has led to widespread layoffs. In addition to the economic cost, however, the pandemic has also inflicted an irreversible cost to economies in the form of human loss. So far, estimates indicate that over one million humans have lost their lives worldwide, while millions more still battle the pandemic. Beside its impact on human life, the COVID-19 pandemic has wide ranging socio-economic impacts, endangering lives, livelihoods, employment, and earnings as well as impeding service delivery. According to World Bank estimates, the pandemic could also lead to permanent loss in learning resulting in trillions of dollars in lost earnings. Despite the challenging conditions, recent global economic information indicates some recovery, albeit uneven and possibly temporary,across countries after gradual easing of lockdowns. This recovery, which is largely supported by unprecedented interventions by the central banks and governments, however, remains uneven and still far from the pre-pandemic levels. In particular, most of the major economies are again observing a surge in new infections and some of them have already re-instituted targeted lockdowns. This leaves the global economic outlook more uncertain over the coming period. The Jordanian economy is also hit hard by the pandemic amidst already high unemploymentand debt levels. Prior to the COVID-19 shock, for the past four years the economy was growing at a low trajectory of around 2.0 percent. This rate of growth was insufficient to absorb the country’s young and growing labor force. These challenges have now been exacerbated by COVID-19 related economic disruptions. Jordan’s unemployment rate spiked to 23.0 percent in Q2-2020, 3.7 percent higher than Q1-2020, with youth, particularly female youth, disproportionally affected by the crisis. Moreover, according to a World Bank study on the short-term impact of the COVID-19 pandemic on businesses, Jordan is among the countries with the largest expected drop in sales, at 60 percent, while 54 percent of businesses report they have fallen or expect to fall in arrears. 2021-03-17T15:27:14Z 2021-03-17T15:27:14Z 2020-10 Report http://documents.worldbank.org/curated/en/411101615477814784/Jordan-Economic-Monitor-Fall-2020-Navigating-through-Continued-Turbulence http://hdl.handle.net/10986/35277 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling Middle East and North Africa Jordan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ECONOMIC GROWTH
LABOR MARKET
PUBLIC FINANCE
FISCAL TRENDS
PUBLIC DEBT
BALANCE OF PAYMENTS
MONETARY POLICY
INFLATION
ECONOMIC OUTLOOK
PENSIONS
SOCIAL INSURANCE
PUBLIC SPENDING
TAXATION INCIDENCE
spellingShingle ECONOMIC GROWTH
LABOR MARKET
PUBLIC FINANCE
FISCAL TRENDS
PUBLIC DEBT
BALANCE OF PAYMENTS
MONETARY POLICY
INFLATION
ECONOMIC OUTLOOK
PENSIONS
SOCIAL INSURANCE
PUBLIC SPENDING
TAXATION INCIDENCE
World Bank
Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence
geographic_facet Middle East and North Africa
Jordan
description The global economy continues to reel from the COVID-19 (coronavirus) shock. The initial economic impact of COVID-19 on global output is projected to be far more devastating than the disruptions observed during the peak downturn of the global financial crisis of 2007–09. Across theworld, lockdowns and mobility restrictions meant to control the spread of virus caused a significant slump in consumer spending and production during the first half of 2020. This in turn created substantial challenges for labor markets worldwide and has led to widespread layoffs. In addition to the economic cost, however, the pandemic has also inflicted an irreversible cost to economies in the form of human loss. So far, estimates indicate that over one million humans have lost their lives worldwide, while millions more still battle the pandemic. Beside its impact on human life, the COVID-19 pandemic has wide ranging socio-economic impacts, endangering lives, livelihoods, employment, and earnings as well as impeding service delivery. According to World Bank estimates, the pandemic could also lead to permanent loss in learning resulting in trillions of dollars in lost earnings. Despite the challenging conditions, recent global economic information indicates some recovery, albeit uneven and possibly temporary,across countries after gradual easing of lockdowns. This recovery, which is largely supported by unprecedented interventions by the central banks and governments, however, remains uneven and still far from the pre-pandemic levels. In particular, most of the major economies are again observing a surge in new infections and some of them have already re-instituted targeted lockdowns. This leaves the global economic outlook more uncertain over the coming period. The Jordanian economy is also hit hard by the pandemic amidst already high unemploymentand debt levels. Prior to the COVID-19 shock, for the past four years the economy was growing at a low trajectory of around 2.0 percent. This rate of growth was insufficient to absorb the country’s young and growing labor force. These challenges have now been exacerbated by COVID-19 related economic disruptions. Jordan’s unemployment rate spiked to 23.0 percent in Q2-2020, 3.7 percent higher than Q1-2020, with youth, particularly female youth, disproportionally affected by the crisis. Moreover, according to a World Bank study on the short-term impact of the COVID-19 pandemic on businesses, Jordan is among the countries with the largest expected drop in sales, at 60 percent, while 54 percent of businesses report they have fallen or expect to fall in arrears.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence
title_short Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence
title_full Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence
title_fullStr Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence
title_full_unstemmed Jordan Economic Monitor, Fall 2020 : Navigating through Continued Turbulence
title_sort jordan economic monitor, fall 2020 : navigating through continued turbulence
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/411101615477814784/Jordan-Economic-Monitor-Fall-2020-Navigating-through-Continued-Turbulence
http://hdl.handle.net/10986/35277
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