AMMAN — The repercussions of the pandemic are
still threatening the growth of the national economy, and economic recovery is
being exacerbated by the crisis in Ukraine. A number of economists fear that
the conflict will affect supply chains which depend on components and goods
coming from
Russia and Ukraine, and some also say that it may contribute to
inflation.
اضافة اعلان
In light of pressure from the
pandemic and exposure
to the possible repercussions of the Ukrainian crisis, some experts are calling
for alternative supply chains in order to spare the economy the risks of
inflation and high interest rates. Jordan News spoke with a number of
economic experts to find out how the Jordanian economy can benefit from the
flexibility of supply chains.
Economist
Wajdi Makhamreh said that supply chains which are flexible in terms of cost and
ease have a positive effect on the
Jordanian economy, both in terms of the flow
of imports and in terms of lowering production costs.
Economic expert Hossam Ayesh explained that after
the end of pandemic closures, supply chains could not meet increasing global
demand either due to overcrowding or inflexibility, which caused a rise in the
price of oil and many foodstuffs and resulted in massive global inflation and a
decrease in living standards.
Ayesh added that the conflict in
Ukraine requires
Jordan to change its economic model in order to reduce its demand for imports
from distant countries and regions exposed to crisis. He concluded that what is
happening globally is a lesson for Jordan and an opportunity to improve levels
of food and economic security by reducing the need for long and unreliable
supply chains.
On the other
hand, economist Mazen Marji believes that the impacts of the Ukraine crisis are
limited. Marji argued that Ukraine does not represent a large volume of
Jordan’s imports or production inputs, and that there is enough flexibility in
global supply chains to mitigate any negative effects on the national economy.
Additionally, imports from
Europe to Jordan are less than 2 billion euros per
year, and exports from Jordan to Europe are less than 300 million euros per
year.
Finally, Marji does not expect sanctions on Russia
to affect European production inputs in the near future, minimizing any impact
the crisis might have on those limited imports. However, the crisis will affect
global oil prices, which will in turn affect Jordan, despite most Jordanian oil
imports coming from countries where there are no current disruptions, Marji
explained.
Marji said that the most important impact of the crisis on
Jordan’s economy may be its effect on Jordanians working in Ukraine or
Jordanian investors with projects in that country.
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