Jordan Economic Monitor, Spring 2016 : The Challenge Ahead
Amidst a turbulent regional political and security environment, Jordan wrestles with sluggish growth and high unemployment. A number of risks materialized in 2015, particularly related to security spillovers and their negative impact on tourism, co...
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26583291/jordan-economic-monitor-challenge-ahead-executive-summary http://hdl.handle.net/10986/24942 |
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okr-10986-249422021-05-25T08:50:45Z Jordan Economic Monitor, Spring 2016 : The Challenge Ahead World Bank economic growth economic outlook employment fiscal policy monetary policy urban service delivery urban displacement Amidst a turbulent regional political and security environment, Jordan wrestles with sluggish growth and high unemployment. A number of risks materialized in 2015, particularly related to security spillovers and their negative impact on tourism, construction, investment and exports. As such, the economy slowed down for the first time since 2010, further widening Jordan’s output gap, with growth declining from 3.1 percent in 2014 to 2.4 percent for 2015. However, growth remained otherwise broad-based. The largest contributions to growth came from ‘finance and insurance services’, ‘transport, storage and communications’, ‘producers of government services’, ‘electricity and water’ and manufacturing sectors although it was ‘mining and quarrying’ and ‘electricity and water’ that saw the highest growth rates in 2015. Unemployment reached an average of 13.0 percent in 2015, 1.1 percentage points wider compared to 2014. Growth is projected to rebound slightly, to an average of 3.3 percent over 2016-2018, provided no further spillovers from the Syrian crisis occur. Chiefly, Jordan will need to continue managing repercussions from the regional security and political situation, and the challenges of hosting 1.37 million Syrians (of which 639,704 registered refugees). Additionally, since Jordan benefits from the GCC for remittances, exports, FDI and grants, large sources of foreign exchange - persistently low oil prices are a risk for Jordan this year and in the medium term. Weak global demand may impact demand for Jordan’s mining exports. Furthermore, the willingness and speed of reform implementation particularly to improve the business climate will be crucial to attract Jordan’s investment aspirations. 2016-08-25T18:54:59Z 2016-08-25T18:54:59Z 2016-05-01 Report http://documents.worldbank.org/curated/en/2016/07/26583291/jordan-economic-monitor-challenge-ahead-executive-summary http://hdl.handle.net/10986/24942 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work Middle East and North Africa Jordan |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
economic growth economic outlook employment fiscal policy monetary policy urban service delivery urban displacement |
| spellingShingle |
economic growth economic outlook employment fiscal policy monetary policy urban service delivery urban displacement World Bank Jordan Economic Monitor, Spring 2016 : The Challenge Ahead |
| geographic_facet |
Middle East and North Africa Jordan |
| description |
Amidst a turbulent regional political
and security environment, Jordan wrestles with sluggish
growth and high unemployment. A number of risks materialized
in 2015, particularly related to security spillovers and
their negative impact on tourism, construction, investment
and exports. As such, the economy slowed down for the first
time since 2010, further widening Jordan’s output gap, with
growth declining from 3.1 percent in 2014 to 2.4 percent for
2015. However, growth remained otherwise broad-based. The
largest contributions to growth came from ‘finance and
insurance services’, ‘transport, storage and
communications’, ‘producers of government services’,
‘electricity and water’ and manufacturing sectors although
it was ‘mining and quarrying’ and ‘electricity and water’
that saw the highest growth rates in 2015. Unemployment
reached an average of 13.0 percent in 2015, 1.1 percentage
points wider compared to 2014. Growth is projected to
rebound slightly, to an average of 3.3 percent over
2016-2018, provided no further spillovers from the Syrian
crisis occur. Chiefly, Jordan will need to continue managing
repercussions from the regional security and political
situation, and the challenges of hosting 1.37 million
Syrians (of which 639,704 registered refugees).
Additionally, since Jordan benefits from the GCC for
remittances, exports, FDI and grants, large sources of
foreign exchange - persistently low oil prices are a risk
for Jordan this year and in the medium term. Weak global
demand may impact demand for Jordan’s mining exports.
Furthermore, the willingness and speed of reform
implementation particularly to improve the business climate
will be crucial to attract Jordan’s investment aspirations. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Jordan Economic Monitor, Spring 2016 : The Challenge Ahead |
| title_short |
Jordan Economic Monitor, Spring 2016 : The Challenge Ahead |
| title_full |
Jordan Economic Monitor, Spring 2016 : The Challenge Ahead |
| title_fullStr |
Jordan Economic Monitor, Spring 2016 : The Challenge Ahead |
| title_full_unstemmed |
Jordan Economic Monitor, Spring 2016 : The Challenge Ahead |
| title_sort |
jordan economic monitor, spring 2016 : the challenge ahead |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/07/26583291/jordan-economic-monitor-challenge-ahead-executive-summary http://hdl.handle.net/10986/24942 |
| _version_ |
1764457954783789056 |