Economic forecasts point that Jordan’s Moderate Growth economy is only going to see Moderate growth rate in this year but its growth rate is projected to gain ground by 2026. In this regard, the countries’ growth rate will be produced by such factors as the rise in the tourism sector, in the foreign investment, and growth of the manufacturing sector in the country. This is a positive development in as much as Jordan’s economy is concerned for the country has experienced severities in its economical front in the recent past.
A Moderate Growth Rate This Year
This has been lower as compared to the country’s growth rate that has been experienced in other years, this is a positive growth for the country. The moderate growth rate is anticipated to be occasioned by several elements such as; recovery in the tourism sector which has been most impacted by the COVID-19 outbreak. Tourism remains one of the core economic activities within Jordan and its revival is believed to support an increase in the nation’s rate of growth.
A Recovery in the Tourism Sector
Hence, it is believed that an improvement in this sector will in one way or the other improve on the numerical growth rate of Jordan’s economic growth. Another pretty critical industry that suffered from the consequences of the COVID-19 pandemic is the tourism sector, which, however, is predicted to bounce back this year. Anticipated boost in the tourism sector is attributed to amongst others; this improved number of tourists, tourist expenditure per head.
An Increase in Foreign Investment
Higher FDI is also likely to have an impact on the growth rate of Jordan as shown below; The country has various investment prospects in its economy and especially in the manufacturing segment and the foreign investors are believed to exploit the opportunities. It is therefore expected that the foreign investment will have a positive effect on the economy of the country and that it will improve the country’s economic growth rate.
A Growth in the Manufacturing Sector
The manufacturing sector is one of the key sectors in the economy of the country; moreover any increase in manufacturing means that the rate of growth in the economy will be high. Potential factors that may lead to the expansion of the manufacturing sector are factors such as a rise in the demand of manufactured products and an enhanced efficiency in the manufacturing sector.
Challenges Facing Jordan’s Economy
Nevertheless, Jordan has a great potential in economic development and there are several issues which must be discussed. Another issue that the country has to deal with is the high unemployment rate which should be counterbalanced in the following years. High unemployment rates are envisaged to be occasioned by poor availability of jobs, and human resource qualification in the labor market.
The Impact of the COVID-19 Pandemic
The COVID-19 virus has affected Jordan’s economy in a very equal manner as other countries, and this is in the following ways. This pandemic has affected several fields such as the tourism industry and as a result has slowed down the growth of the country. However, The country is expected to bounce back after the pandemic and the growth rate, therefore, is projected to increase by 2026.
The Role of the Government
It can therefore be seen that the government of Jordan has a major role in stimulating economic growth. Through policies which encourage investment, the government can stimulate economic growth alongside creating awareness to business. Government also has the role of encouraging development of the economy by investing in infrastructure and by training and educating the people.
The Outlook for Jordan’s Economy
There is light at the end of the tunnel regarding the growth of the economy of Jordan, given the fact that the growth rate is expected to rise by 2026. Thus the economic growth rate in the country is forecasted with such factors as the increase in tourism services sector, the growth in inflow of the foreign direct investment, and the growth in manufacturing sector. However, there are still some problems in this country such as a high rate of unemployment, and the recent occurrence of COVID-19 pandemic.
Conclusion
All in all, Jordan has been noted to have a fairly moderate growth rate in 2021 but should improve by 2026. It is envisaged that the country’s growth rate will be boosted by; Recovery of the tourism industry, attraction of foreign direct investment among other growths in the manufacturing industry. The government also has the responsibility of spearheading the economy and this it can achieve through policy formulation and offering support to the business.
