Jordan Economic Monitor, Fall 2021 : En Route to Recovery
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, accommodativ...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/265631639429108552/Jordan-Economic-Monitor-Fall-2021-En-Route-to-Recovery http://hdl.handle.net/10986/36748 |
| Summary: | 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. |
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