Jordan's economy faces post-Gaza war challenges

jordan amman 2
(File photo: Jordan News)
AMMAN – The Jordan Strategy Forum (JSF) published a paper intending to shed light on the expected risks to Jordan as a result of Israel's aggression on Gaza and compare them to the risks identified by the World Economic Forum (WEF) in its Global Risks Report 2024, particularly since the results of this report did not cover the fourth quarter of 2024, Al-Mamlaka TV reported.اضافة اعلان

The document stated that the WEF study identifies the most significant threats that countries worldwide may face in the short and long term. The findings were based on a poll of experts and opinion leaders from government, academia, business, civil society, and international organizations. Noting that this survey was performed between September 4 and October 9, 2023, at the start of the assault on Gaza.

According to the study, the possibility of "misinformation and misleading information" is one of the most serious short-term threats to the global economy. While the risk of "severe weather changes" was most crucial in the long run.

According to the WEF report, unemployment is the risk that will have the greatest impact on the Jordanian economy in the next two years, followed by public debt, inflation, economic recession, and contagious illnesses.

Given that the Global Risks Report 2024 survey was conducted prior to the war in Gaza, the JSF conducted a quick opinion poll of its members and partners, including business leaders and national institutions, to determine whether there was a difference in the risks expected to affect the Jordanian economy over the next two years.

The results of the JSF poll concurred with the conclusions of the Global Risks Report 2024 in terms of identifying the top four dangers that are likely to confront the Jordanian economy in the next two years, with a small variation in order.

It was recognized that the most significant concerns include unemployment, increased living costs (inflation), governmental debt, and economic collapse. While the risks resulting from armed conflicts between countries ranked fifth instead of infectious diseases (as stated in the Global Risks Report), this reflects the extent of the impact of the war on Gaza on the Jordanian economy, which was not included in the Global Risks Report's 2024 period.

In light of these findings, the JSF stated that the dangers associated with unemployment, public debt, and economic recession are not new to the Jordanian economy; the Kingdom has been dealing with them for more than a decade. However, the current events and their consequences may exacerbate the impact of these risks on other economic and social variables, particularly foreign commerce, food security, and supply chains.

The forum emphasized the importance of doubling national efforts to take precautionary measures and develop alternative plans to hedge economically, as well as conducting a periodic assessment of the economic situation in light of recent changes and measuring the level of progress and effectiveness of implementing national plans and strategies to reduce the impact of regional and global disturbances on the national economy.

Read more National news
Jordan News