Jordan drops 7 points on competitiveness index

(Design: Jordan News)
AMMAN — Jordan has dropped seven points in the 2022 Global Competitiveness Index and is now ranked 56th globally amongst 63 Arab and foreign countries, Al-Mamlaka TV reported.اضافة اعلان

The report, issued by the Swiss based International Institute for Management Development, showed that Jordan ranked fifth in the Arab world after the UAE, Qatar, Saudi Arabia, and Bahrain.

Jordan advanced one step on the economic performance axis to rank 62nd in the world. However, the Kingdom slipped on two main axes, as it fell in government efficiency by nine steps, ranking 44th globally, while it dropped by 12 steps in the business efficiency, now ranking 45th globally. It maintained its standing on infrastructure at 55th globally.

The report revealed that the most prominent economic challenges facing Jordan this year are “high unemployment rates and energy costs”, pointing to their “impact on the competitiveness of the business and economic sectors, in addition to regional instability and hosting a large number of refugees, which pose challenges to the stability of economic growth.” It also pointed to finance issues considering the high levels of public debt.

Areas that showed improvement pertained to gross domestic product (GDP) and the significant contribution of renewable energy to the total energy mix, the report said.

Some of the indicators that contributed to Jordan’s drop on the index included Jordan’s competitiveness, a decline in tourism income and trade-to-GDP ratio, and a drop in the Kingdom’s current account balance.

Among the most indicators that showed improvement in the competitiveness report are access to finance (68.9 percent), policy stability and predictability (58.3 percent), a skilled workforce (55.3 percent), an effective legal environment (43.7 percent), a high level of education (41.7 percent), a business-friendly environment (39.8 percent), reliable infrastructure (34 percent), effective labor relations (30.1 percent), and cost competitiveness (25.2 percent).

In 2021, Jordan had ranked 49th globally on the Global Competitiveness Index, having advanced nine ranks.

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