AMMAN
— The
World Bank (WB) has stated that Jordan's economic growth, which reached
2.7 percent in the first half of the current year, "was not sufficient to create
enough job opportunities," especially for the increasing numbers of
unemployed youth. It emphasized that various social and economic developments
still hinder the real income
growth of households.
اضافة اعلان
The
unemployment rate in Jordan was 22.3 percent in the third quarter of the
current year, reflecting a decrease of 0.8 percentage points from the third
quarter of 2022 when it stood at 23.1 percent. This rate remained stable
compared to the second quarter of this year, as indicated in the quarterly
report issued by the
Department of Statistics (DoS).
In
its Economic Observatory report, WB added that the rise in living costs
"negatively impacted" the poorest and weakest households in the
Kingdom, explaining that the shortage of cash resources and the
reduced ability to borrow "may hinder" these households' ability to provide
sufficient health and educational services for their children, Al-Mamlaka TV
reported.
WB
stated that the recovery of the
tourism and other services sectors could
support wages, but significant social and economic challenges arise from the
private sector's weak ability to create job opportunities, labor market
fragmentation, the dominance of the informal economy, and low productivity, all
of which limit the real income growth of households.
The
adjusted economic participation rate (labor force aged 15 and above) was 32.6
percent for the total population (52.7 percent for males and 13.5 percent for
females) in the third quarter of 2023, compared to 33.0 percent for the total
population (52.5 percent for males and 13.7 percent for females) in the third
quarter of 2022. The economic participation rate for females in Arab countries
is approximately 19 percent.
WB’s
report indicated that social safety nets play a crucial role in protecting
families from shocks that could have severe consequences for children's growth,
potentially leading them to drop out of school. The report noted that the
poorest and weakest families in Jordan spend a larger portion of their income
on daily needs and may resort to borrowing or cutting expenses.
As
of 2019, the poverty rate in Jordan was 15.7 percent, according to the latest
official statistics for the period 2017-2018, according to the General
Statistics Department.
The
World Bank downgraded Jordan to the lower tier of the middle-income category in
July 2023, based on estimates of per capita income from the previous year. This
decrease is attributed to the change in Jordan's population published in the
Global Population Prospects 2022 (an increase estimated at 9.6 percent in
2022).
WB
emphasized that targeted interventions to reduce poverty can help poor families
prioritize education and health, making them more resilient to potential
shocks. Women's participation in the labor market is the most sustainable
protection against poverty and vulnerability.
It
stated that Jordan's economic trajectory still demonstrates resilience in the
face of global and local challenges, with economic growth reaching 2.7 percent
in the first half of 2023, driven by strong growth in the services sector and
the recovery of the agriculture sector.
Structural
constraints continue to burden the labor market, with labor force participation
rates continuing to decline for both men and women. In particular, women's
labor force participation in Jordan did not exceed 14 percent, one of the
lowest rates in the world.
Jordan
is working within the framework of the Women's Empowerment Strategy in the
Economic Vision 2033 and the National Women's Strategy 2020-2025 to undertake
significant reforms aimed at doubling women's participation in the labor force
over the next ten years.
The
report emphasized that, as Jordan continues to navigate difficult economic
situations and ongoing shocks, sustained focus on unleashing women's economic
potential is critically important to support long-term growth and development
in the Kingdom.
Growth
is expected to reach 2.6 percent in 2023. Additionally, the current account and
fiscal deficits are expected to decrease to 6.6 percent and 5.2 percent,
respectively. Estimates indicate that the inflation rate will slow to around
2.4 percent, according to WB.
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