AMMAN — Economic experts unanimously agreed that
Jordan’s reliance on importing a large number of its needs, including food and
oil, contributed to raising the inflation rate to 4.1 percent.
اضافة اعلان
Their statements come amid varying expectations
about possibly another rise in the coming months, considering the high
inflation rates recorded elsewhere, including in large economies such as the
US.
Governor of the Central Bank of Jordan
Adel Sharkas
said recently that Jordan’s strong commitment to economic reforms has
strengthened the international community’s confidence in the Jordanian economy.
He said Jordan succeeded, for a fifth time, in
reaching an agreement at the expert level with the
International Monetary Fund (IMF) regarding reviewing performance in light of the reform program that is
proceeding in Jordan and supported by the Fund’s Extended Facility Agreement.
Sharkas revealed, in an interview with “Sixty
Minutes” program, which was broadcast on Jordan Television Friday that the
success in this review represents a clear message from the most important
global financial institution, on the stability of the macroeconomic, financial,
and monetary environment and the integrity of the economic approach.
He said the review yielded promising results, as the
IMF raised its expectations for the performance of the Jordanian economy during
this year to 2.7 percent, compared to 2.4 percent in the previous review,
despite the fact that the fund, during the past month, reduced its forecasts
for the growth of the global economy due to the continuing imbalances in supply
chains and geopolitical developments.
Economist
Mazen Irshaid told
Jordan News that
global inflation is expected to continue to rise globally, even beyond the 8
percent rate recorded in some industrialized nations. “In Jordan, it exceeded 4
percent, which is less than the global average because it is a small economy,”
he said.
There are several reasons that led to the inflation,
he said, “most notably the closures in China, and its impact on international
trade and prices, as well as the Russian-Ukrainian (conflict) ... which led to
a rise in prices, especially for basic commodities in Jordan, as it is an
importing country”.
For example, “Jordan imports more than 95 percent of
its energy needs at international prices, and this was a result that will be reflected
in the inflation rates”, he added.
Moreover, “as for foodstuffs, Jordan imports more
than 80 percent of its food needs, and with high shipping costs and slow supply
chains, these reasons exacerbate economic burdens”.
He explained that, as a result, the Jordanian
government has no options, “given that it imports most of its needs from
abroad, and all that can be done is to raise interest rates to overcome
inflation”.
Economist
Zayyan zawaneh told
Jordan News that the inflation rate in Jordan is acceptable so far, “and what the Governor
of the Central Bank announced that the condition is better than many of what
many countries are witnessing, is true”.
The reason for the non-increase in inflation is due
to several reasons, he said. “The most important of which is the government’s
implementation of His Majesty the King’s precautionary directives by raising
the stocks of wheat, barley, and grains before their prices rise”.
“In addition to the rise in the private sector’s
commodity stocks with prices before their rise, and the government’s control of
shipping costs by setting ceilings for customs purposes, and the originally
weak internal demand as a result of weak incomes”, he added.
He also said that the problem that the world is
facing now is due to the results of the strict monetary policy imposed by the
US Treasury Department on the world, and the possibility of the global economy
entering a severe recession.
The signs of this appeared in the US with the
decline in used car prices, interest rates on mortgages, layoffs in the
technology sector, in addition to the contraction of the British and Japanese
economies, and Europe’s suffering from the Ukraine war.
“We hope that the Central Bank will mitigate the
wave of raising the interest rate on the Jordanian Dinar, to alleviate the
burden of what is coming”, he said.
Economist
Mohammad Al-Bashir, however, told
Jordan
News that the rate of inflation in Jordan “is not small, if we compare it
with the stability of the domestic economy and the high costs”.
“Rather, this percentage reflects a problem in the
structure of the Jordanian economy, as 65 percent of expenditures are current
expenditures”, he said.
Bashir explained that the government has reduced
some tax rates on some commodities and fixed the prices of some oil
derivatives, but it soon raised prices in sectors such as real estate, “which
contributes to high inflation”.
He noted that “we have to be aware that our economy
is in a difficult and critical situation, as the trade balance is negative in
favor of imports, in addition, the economy is witnessing a slowdown in the rate
of growth, not to mention the growing unemployment crisis”.
He considered that this matter bears repercussions
on average Jordanians, represented by manifestations of violence and crimes,
“the economic situation is disturbing”.
“Also, the economic team cannot handle this matter
alone, and it must participate in the formulation of decisions related to the
economy”, he concluded.
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