Jordan is bearing the highest additional fiscal burden relative to the size of its economy among Arab countries to mitigate the economic and social impacts of the U.S.-Israeli war with Iran, according to new estimates by the United Nations Economic and Social Commission for Western Asia (ESCWA).
اضافة اعلان
The report estimates Jordan's additional financial burden at 0.691% of its gross domestic product (GDP)—the highest ratio in the Arab region as the government works to curb rising poverty levels and preserve households' purchasing power.
According to the report, Jordan has introduced a range of measures to soften the impact of the conflict, including reducing flour and wheat prices to offset higher fuel costs, maintaining gas prices, and gradually adjusting fuel prices to limit the impact on consumers.
Prime Minister Jaafar Hassan previously said the government had chosen not to pass the full increase in global fuel prices on to the domestic market in an effort to protect citizens and the economy from the effects of the war.
He noted that additional monthly costs in the energy and electricity generation sectors have exceeded JD150 million.
Energy and Mineral Resources Minister Saleh Kharabsheh also said that the disruption of natural gas supplies forced Jordan to operate power plants using alternative fuels, resulting in additional costs of approximately JD3 million per day, or nearly JD100 million over one month.
Despite these costs, the government has kept electricity tariffs unchanged while absorbing part of the financial burden caused by the conflict.
Government measures have extended beyond the energy sector. Authorities have strengthened strategic reserves of essential commodities to ensure continued supplies and maintain market stability.
Minister of Industry, Trade and Supply Yarub Qudah said Jordan's wheat reserves are sufficient for six months, rising to approximately 10 months when contracted quantities are included. He stressed that supply chains remain stable and that there is no reason for panic buying.
As energy, transportation, and supply costs continue to rise, the government has also introduced spending restraint measures, including reducing official travel and cutting government expenditures, in an effort to contain the financial pressures created by the conflict without affecting essential public services.
ESCWA's estimates indicate that Jordan faces the largest additional fiscal burden in the Arab region to cushion the social consequences of the war.
The government's response has translated into direct spending on energy, maintaining stable electricity and fuel prices, strengthening food security, and limiting the impact of the crisis on citizens' daily lives.
