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Mega-projects could help Jordan deal with risks forecast by WEF for 2022

World Economic Forum
AMMAN — Economic experts believe that if the government wants to deal with the risks forecast for 2022, it has to attract foreign investors and build mega-projects that can provide jobs for unemployed youth, contribute to eliminating poverty, and revive the economic stagnation. اضافة اعلان

The experts interviewed by Jordan News agreed with the Global Risks Report 2022, issued by the World Economic Forum (WEF), which said that Jordan faces five risks this year: debt crisis, unemployment and livelihood crises, natural resource crisis, prolonged economic stagnation, and price instability.

Wajdi Makhamreh, investment and economic expert, told Jordan News that Jordan is passing through difficult economic circumstances, yet "the government lacks a strategic plans to cope with these crisis and this was made amply clear by the COVID-19 pandemic".

Makhamreh said that there is a clear decline in domestic investment and that the natural resources are not or underutilized, which makes it incumbent on the government to build mega-projects and take advantage of the natural resources if it really wants to revive the economy.

Hussam Ayesh, an economic analyst, said that the government has to focus on attracting investments in light of the fact that the activity of several sectors has stagnated due to the pandemic.

He added that the most prominent problem facing Jordan is unemployment, and that while serious projects could create job opportunities, "we are losing foreign investors and, unfortunately, the government is not giving serious attention to those investors, and does not encourage them to come and invest in Jordan".

According to Ayesh, for the time being, the government should focus on taking advantage of all available opportunities, such as natural resources, which are aplenty in Jordan, but are not utilized.

Former general manager of the Association of Banks in Jordan Adli Qandah told Jordan News that new projects must be developed in different sectors, as they would help unemployment and poverty rates drop.

He said that the government needs to strengthen its partnership with the private sector to develop new projects and create incentives to revive the economy.

The COVID-19 pandemic and its economic and social consequences still pose a serious threat to the world, and the report said that the inequality in vaccination and the outcome of economic recovery threaten to exacerbate geopolitical tensions.

The Global Risks Report series tracks global risks perceptions among risk experts and world leaders in business, government, and civil society. It examines risks across five categories: economic, environmental, geopolitical, societal, and technological.

Every year the report also analyses key risks to explore further; these could be risks that feature prominently in the survey, those for which warning signs are beginning to surface, or potential blind spots in risk perceptions.

According to the report, only 6 percent of the population of the poorest 52 countries was vaccinated, and by 2024, countries with developing economies (excluding China) will see their GDP decrease by 5.5 percent, while countries with developed economies will have exceeded GDP growth expectations by 0.9 percent, which widens the global financial gap.

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