Jordan GDP growth forecast at 1.4 percent this year

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Photo: Hisham Zayadnh on Unsplash
AMMAN  –– Jordan’s real Gross Domestic Product (GDP) growth is projected to recover to 1.4 percent in 2021 from an estimated contraction of 1.8 percent over last year, according to the World Bank’s April update. اضافة اعلان

Apparently, Wednesday’s measures taken by the government to mitigate the impact of COVID-19 and stimulate the market are expected to pay off in the short run at the macroeconomic level, along with other steps taken in the recent months.  

“In the immediate run, several policy measures are expected to provide some boost including public sector employees’ salary increase, social security net programs and the minimum wage increase,” the statement said.

The World Bank also explained that the expected GDP growth increase would result from better performance of exports as demand picks up in the US and Gulf countries. “Nevertheless, growth in the immediate run faces significant downside risks due to rising COVID-19 cases and slow vaccination, and over medium-term remains constrained by the country’s chronic structural weaknesses”.