The Jordanian economy faces compounded
challenges exacerbated by the Israeli aggression on the Gaza Strip and its
continuous assaults by the occupation forces and settlers in the West Bank.
اضافة اعلان
These regional events, which have been
pressuring the Jordanian economy for decades, increase the level of uncertainty
and further deepen the structural imbalances it suffers from. This is expected
to significantly and negatively affect many important economic indicators and
sectors, especially the tourism sector, which has played a key role in driving
recent economic growth and has contributed to stabilizing the current account
of the balance of payments.
The economic situation in Jordan is complex;
and it is characterized by weak economic growth and heavy reliance on foreign
aid, placing the country in a fragile position. This is evident in the
sustained public budget deficit and the continuous rise in public debt.
Additionally, the economic policies of the Jordanian government, heavily
influenced by the standards agreed upon in the International Monetary Fund
(IMF) programs over the past decades, have failed to achieve the necessary
balance between financial and monetary stability and improving overall economic
indicators.
The economic situation in Jordan is complex; and it is characterized by weak economic growth and heavy reliance on foreign aid, placing the country in a fragile position.
Jordan's previous experiences with the IMF
have focused on enhancing financial and monetary stability at the expense of
indicators like economic growth, poverty, unemployment, and the declining
quality of public services such as health and education. These policies have
led to an exacerbation of public debt and a continuous increase in poverty and
unemployment rates.
Amid these challenges, expanding capital
expenditure appears as a positive step towards driving economic growth forward,
but the greater challenge lies in directing this spending towards projects that
effectively stimulate economic growth.
The government's announcement of no new taxes
is appreciated given the high tax burden stifling the economy. However, more
pressing in these times should have been a focus on revising tax policies to
reduce indirect taxes and alleviate distortions in the existing tax structure,
thereby introducing some fairness into the tax system and effectively
stimulating economic growth.
Increasing allocations for social protection
is an important step, but what adds to its significance is the need to
redevelop social protection policies to be more efficient and comprehensive.
This can be achieved by reevaluating the distribution of resources and
improving governance in the implementation of these policies to ensure social
justice.
The government's announcement of no new taxes is appreciated given the high tax burden stifling the economy. However, more pressing in these times should have been a focus on revising tax policies to reduce indirect taxes and alleviate distortions in the existing tax structure, thereby introducing some fairness into the tax system and effectively stimulating economic growth.
The biggest challenge lies in achieving the
objectives of the Economic Modernization Vision, which forms the general
framework for the national economic trajectory. The state budget for 2024 is
based on an economic growth rate of 2.6 percent. However, the assumptions of
this vision are much higher; achieving the economic vision's goals seems
far-fetched under the current circumstances.
To make a breakthrough in enhancing our
economic and social objectives, which include tangible economic growth,
reducing unemployment and poverty rates, genuinely reducing the budget deficit,
and decreasing public debt, the government needs to develop its economic and
financial policies in line with the need to stimulate growth and create job
opportunities and re-prioritize its public spending.
Disclaimer:
Views expressed by writers in this section are their own and do not necessarily reflect Jordan News' point of view.
Read more Opinion and Analysis
Jordan News
.jpg)
.jpg)
