AMMAN — The
Jordanian Investor Confidence Index issued by the Jordan Strategy Forum
witnessed a decrease of about 11 points compared to the first quarter of the
year; it reached 178.1 points in the second quarter of 2022, while in the first
quarter of 2022 it was 189.3 points.
اضافة اعلان
In all, the index of confidence in economic activity
decreased from 200 points in the first quarter of 2022, to 178 points in the
second quarter of 2022.
The value of foreign direct investment inflows also
decreased, reaching JD132.4 million in the second quarter of 2022 from JD 260.3
million in the first quarter of the year.
The industrial production index increased from 90.3
points in the first quarter of 2022 to 94.3 points in the second quarter of
2022.
The confidence index in the monetary system
decreased from 174.9 points in the first quarter of 2022 to 156.1 points in the
second quarter of 2022.
Economist
Zyan Zawaneh told
Jordan News that the
decline in investor confidence in economic activity is linked to a set of
indicators, “most notably, the decline in the volume of investment flows and
the chaos of managing the investment dossier in general, in addition to the
high budget deficit, the decrease in the foreign currency reserves at the
Central Bank of Jordan, and the rapid rise in interest rates on the dinar”.
He added that the forecast recession and decline in
global economic growth for the rest of the year and for next year, and the
“anxious political and military reality in Europe and Britain deepen the state
of uncertainty and make internal investors or owners of external capital
cautious”.
At the same time, he said, the positive local
indicators are summed up in the US payment of aid, which will reduce the budget
deficit and increase the central bank reserve, and in improved export and
tourism numbers.
The state of uncertainty will deepen as indicators
point to an upcoming recession, he added.
Economist
Mazen Irsheid said that “this result is
normal, especially in view of the rise in investment, manufacturing, and energy
costs, and the rise in interest rates at a time when inflation is still at high
levels.”
“These reasons led to the difficulty of borrowing
from banks,” he told
Jordan News.
“As a result, profit margins have shrunk for
investors, and it has been noticeable recently that foreign investments in
Jordan have declined,” he added.
Economist Mohammad Al-Bashir told
Jordan News that
investor confidence declined during the last period due to various
considerations, “most prominent of which are the high cost of the national
economy, especially the sales tax, the rise in energy prices, and the high
interest rate, in addition to the lack of seriousness in combating corruption
and the absence of a fair distribution of wealth, which contributes to creating
a gap between the income of citizens”.
He called for reviewing the structure of the
national economy and seriously reconsidering the investment file, “since it
brings great benefits to the country, most notably helping solve the
unemployment crisis, which has serious effects on society and families”.
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