Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation
Jordan’s economy achieved a relatively strong rebound, registering 2.2 percent growth in 2021. The nascent recovery was led by a broad-based expansion of the services and industrial sectors, while the rebound in the travel and tourism also exceeded...
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Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099410007122222740/IDU05823c2b70646004a400b9fa0477cea7736a4 http://hdl.handle.net/10986/37748 |
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okr-10986-377482022-07-27T05:10:46Z Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation World Bank MODERATE ECONOMIC RECOVERY SERVICE SECTOR JOB LOSS COVID REOPENING INCREASED DOMESTIC DEMAND JOB CREATION LABOR MARKET INDICATORS INDUSTRIAL SECTOR EXPANSION TRAVEL AND TOURISM REBOUND JORDAN ECONOMIC POLICY COVID-19 UNCERTAINTY GLOBAL ECONOMIC SHOCK IMPACTS Jordan’s economy achieved a relatively strong rebound, registering 2.2 percent growth in 2021. The nascent recovery was led by a broad-based expansion of the services and industrial sectors, while the rebound in the travel and tourism also exceeded expectations. This robust economic recovery was supported by accommodative but prudent monetary and fiscal policy along with a recovery in domestic demand and the gradual reopening of the economy. However, the recovery of some subsectors, particularly contact-intensive services continues to lag behind pre-pandemic level, leading to weak recovery in jobs, especially among the Jordanian youth. Moreover, the underlying improvement in domestic demand amid an unprecedented increase in the global commodity prices has kept the current account deficit elevated for another year. Nonetheless, Jordan ended 2021 on a strong footing as Central Bank’s gross foreign reserves remained at a comfortable level, on the back of strong multilateral and bilateral support. Meanwhile, the Central Government resumed its fiscal consolidation path, aided by strong growth in both tax and non-tax revenues. The Jordanian economy is expected to sustain recent momentum during 2022, aided by a full opening of the economy and a return in tourism and travel which is anticipated to boost Jordan’s services sector. However, persistent global headwinds, including rising international commodity prices, global supply chain bottlenecks, negative spillovers from Russian invasion of Ukraine, and Fed tapering, pose major downside risks to Jordan’s economic outlook. Thus, a private sector driven growth and investment reform agenda needs to be put in place immediately which can help Jordan manage turbulence and uncertainty better. 2022-07-22T19:36:38Z 2022-07-22T19:36:38Z 2022 Report http://documents.worldbank.org/curated/en/099410007122222740/IDU05823c2b70646004a400b9fa0477cea7736a4 http://hdl.handle.net/10986/37748 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work 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 |
MODERATE ECONOMIC RECOVERY SERVICE SECTOR JOB LOSS COVID REOPENING INCREASED DOMESTIC DEMAND JOB CREATION LABOR MARKET INDICATORS INDUSTRIAL SECTOR EXPANSION TRAVEL AND TOURISM REBOUND JORDAN ECONOMIC POLICY COVID-19 UNCERTAINTY GLOBAL ECONOMIC SHOCK IMPACTS |
| spellingShingle |
MODERATE ECONOMIC RECOVERY SERVICE SECTOR JOB LOSS COVID REOPENING INCREASED DOMESTIC DEMAND JOB CREATION LABOR MARKET INDICATORS INDUSTRIAL SECTOR EXPANSION TRAVEL AND TOURISM REBOUND JORDAN ECONOMIC POLICY COVID-19 UNCERTAINTY GLOBAL ECONOMIC SHOCK IMPACTS World Bank Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation |
| geographic_facet |
Middle East and North Africa Jordan |
| description |
Jordan’s economy achieved a
relatively strong rebound, registering 2.2 percent growth in
2021. The nascent recovery was led by a broad-based
expansion of the services and industrial sectors, while the
rebound in the travel and tourism also exceeded
expectations. This robust economic recovery was supported by
accommodative but prudent monetary and fiscal policy along
with a recovery in domestic demand and the gradual reopening
of the economy. However, the recovery of some subsectors,
particularly contact-intensive services continues to lag
behind pre-pandemic level, leading to weak recovery in jobs,
especially among the Jordanian youth. Moreover, the
underlying improvement in domestic demand amid an
unprecedented increase in the global commodity prices has
kept the current account deficit elevated for another year.
Nonetheless, Jordan ended 2021 on a strong footing as
Central Bank’s gross foreign reserves remained at a
comfortable level, on the back of strong multilateral and
bilateral support. Meanwhile, the Central Government resumed
its fiscal consolidation path, aided by strong growth in
both tax and non-tax revenues. The Jordanian economy is
expected to sustain recent momentum during 2022, aided by a
full opening of the economy and a return in tourism and
travel which is anticipated to boost Jordan’s services
sector. However, persistent global headwinds, including
rising international commodity prices, global supply chain
bottlenecks, negative spillovers from Russian invasion of
Ukraine, and Fed tapering, pose major downside risks to
Jordan’s economic outlook. Thus, a private sector driven
growth and investment reform agenda needs to be put in place
immediately which can help Jordan manage turbulence and
uncertainty better. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation |
| title_short |
Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation |
| title_full |
Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation |
| title_fullStr |
Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation |
| title_full_unstemmed |
Jordan Economic Monitor - Spring 2022 : Global Turbulence Dampens Recovery and Job Creation |
| title_sort |
jordan economic monitor - spring 2022 : global turbulence dampens recovery and job creation |
| publisher |
Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/099410007122222740/IDU05823c2b70646004a400b9fa0477cea7736a4 http://hdl.handle.net/10986/37748 |
| _version_ |
1764487833769213952 |