Jordan feels 2.5% growth depends on continued economic activity

Jordan feels 2.5% growth depends on continued economic activity

Jordan feels 2.5% growth depends on continued economic activity

an hour ago

People walk past closed shops in the market due to tougher measures taken by the government to fight against COVID-19 in Catania, Italy, on Sunday. Reuters

A rebound in Jordan's economic growth to a forecast 2.5% in 2021 depends on continued economic activity during the coronavirus pandemic, the country's finance minister said on Sunday.

Growth contracted by 3% in 2020, hit by lockdowns, border closures and a sharp fall in tourism during the pandemic, but the government and the International Monetary Fund (IMF) both predict a bounce of similar magnitude this year.

"This forecast depends on the assumption of continued economic activity without imposing any lockdowns, if the contrary happens, this growth estimate will not be achieved,“ Mohammad Al Ississ told deputies during a budget speech in parliament.

The country's public finances and balance of payments have been strained by the collapse of tourism and lower remittances from workers overseas, with unemployment soaring to a record 22% due to bankruptcies and layoffs.

But the gradual reopening of most of Jordan's key business and manufacturing activities since last summer helped its economy temper earlier IMF estimates of a severe 5% contraction in 2020.

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