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