Amman, July 4 (Petra) -- The national economy has in recent years demonstrated many strengths that enabled it to withstand regional turmoil and global fluctuations, including a diversified production base, sound management of fiscal and monetary policies, and an ability to manage crises without disrupting economic activity, according to economists.
The national economy's ability to continue growing and maintaining stability despite regional turbulence and shocks is not a coincidence, but is the result of accumulated balanced economic, monetary, and fiscal policies and ongoing institutional reforms, the economists said in interviews with Petra.
They cited a diversification of income sources as the Kingdom relies on a wide range of economic resources, including national exports, remittances from Jordanians abroad, tourism revenue, services, human resources, and others.
They were unanimous that the next phase requires a shift to job-creating growth, achieved through increasing productivity, promoting and stimulating local and foreign investment, expanding the export base, and implementing projects outlined in the economic modernization vision.
The national economy has proven resilience and an ability to withstand shocks and successive global and regional crises over the past years, commented Iyad Abu Haltam, Chairman of the East Amman Industrial Investors Association.
He said a review of the national economy's historical performance in recent years clearly demonstrates a capacity to maintain positive growth rates, which have not declined sharply despite exceptional circumstances, including Covid, global supply chain disruptions, the Russian-Ukrainian war, the aggression against Gaza, as well as the global economic turmoil, recent geopolitical tensions, and the closure of the Strait of Hormuz.
Haltam also pointed to prudent economic policies adopted over the past decades as a key pillar that bolstered economic stability in the Kingdom, foremost among which is the stabilization of the dinar's exchange rate, in addition to economic reform programs.
These policies have helped to promote the investment and business environment and protect the economy from various fluctuations and crises for more than three decades.
He noted that the Central Bank of Jordan's foreign currency reserves have exceeded $27 billion, a historic and unprecedented figure reflecting a strong financial position.
Haltam also noted that Jordanian products now reach more than 150 countries worldwide, supported by a diversified industrial base encompassing pharmaceuticals, fertilizers, chemicals, food processing, engineering, and metals.
He expressed hope the Kingdom will in the coming years meet a 5% growth target set by the economic modernization vision.
For his part, Director General (CEO) of the Association of Banks in Jordan, Maher Al-Mahrouq, said a strong banking sector has been a key pillar of economic and financial stability in the Kingdom.
Despite the challenges and difficulties facing the region, Covid, supply chain disruptions, and high global inflation rates, the national economy did not experience any major financial or monetary imbalances, and it continued to achieve positive growth rates and maintain price stability and the dinar's exchange rate, he said.
Al-Mahrouq said the banking sector has proven it is the first line of defense for economic stability, as the capital adequacy ratio in licensed banks reached 17.8 percent at the end of last year, much higher than the minimum regulatory requirement.
He explained that economic reforms implemented by the government within the vision of economic modernization, and within the framework of cooperation programs with the International Monetary Fund, boosted confidence in the national economy.
In its recent review, the IMF indicated that Jordan continues to implement the reform program successfully, and that the primary deficit in 2025 was better than the target, with continued work to reduce public debt to reach about 80 percent of the GDP by 2028, he pointed out.
The national economy has become more adaptable to changes through diversifying sources of growth, expanding the digital economy, improving the business environment, strengthening partnerships with the private sector, in addition to investing in value-added sectors such as information technology, services, renewable energy, and export industries, said Al-Mahrouq.
Specialist in economic affairs, Ahmad Majali, commented that the national economy had not dealt with external shocks as mere transient events, but rather developed, over time, an institutional and economic capacity to adapt to them and absorb their impact.
Despite being small and affected by fluctuations in energy prices, the costs of shipping and tourism, and the overall geopolitical developments in the region, the national economy continued to withstand, grow, and overcome hardships.
Growth, he said, is no longer tied to one sector, but rather became more widespread among various economic activities, with the majority of them growing in the first quarter of the year, which proves the economy is moving on a broader basis.
"The agriculture, manufacturing, mining, and electricity sectors have emerged as key drivers of this growth, which enhances the economy's ability to withstand when one of the sectors is exposed to pressure or slowdown," he explained.
The reason behind the steadfastness of the national economy lies in a combination of a diversie productive base, good management of financial and monetary policies, and an institutional capacity to address crises without disrupting economic activity, said Majali, stressing that Jordan was not far from shocks, but it was able to absorb an important part of their effects and maintain a relatively upward growth path.
The next stage requires moving from steadfastness to higher growth that generates more job opportunities through raising productivity, enhancing investment, expanding the export base, and accelerating the implementation of projects under the vision of economic modernization, he said.
//Petra//SS
