Economists predict higher GDP growth rate in light of government …
(MENAFN- Jordan Times) AMMAN – Jordan’s gross domestic product (GDP) grew 3.2 percent in the second quarter of this year, compared to the second quarter of last year 2020, according to data from the Department of statistics (DoS).
Economists have confirmed that GDP growth in the second quarter of this year indicates that the national economy has started to recover from the repercussions of the pandemic.
The construction sector achieved the highest growth rate during the same period at 5.7 percent, followed by the mining sector at 5.4 percent, according to the DoS.
Transportation, warehousing and communications industries grew 4.3%, while manufacturing industries grew 3.9%, and wholesale and retail trade, hospitality and catering was up 3.8%, according to the data.
Political economist Zayan Zawaneh said that there are many factors affecting GDP growth, one of the most important being the reopening of economic sectors and the lifting of restrictions imposed by the pandemic.
He added that improving tax revenues and overall exports has also affected GDP growth.
âThe psychological and political economy also improved during the second quarter of this year, as the diplomatic activity carried out by His Majesty helped to improve economic conditions, be it the ally of the States. United, Russian friendship or the new Arab link between Jordan, Iraq and Egypt. , the New Levant, âZawaneh told the Jordan Times on Sunday in a telephone interview.
Zawaneh noted that all of these factors have played a huge role in giving the Jordanian economy a ‘boost’ and helping the economy enter a new phase at the global and regional levels, where there is power. hope for a process of regional political and economic integration.
Zawaneh stressed that diplomatic efforts must be “accelerated” to help return the economy to what it was before the pandemic and maintain growth in the years to come.
“It is difficult to say what will happen in the third quarter of this year as there will be many elements that will affect the economy, both nationally and regionally,” he said.
Economist Mazen Irsheid said the Kingdom’s GDP growth was âexpectedâ, especially compared to the year 2020, which was economically âthe worst yearâ in Jordan’s history.
“Since the beginning of September, the national economy has grown faster than at the start of the year, and GDP is expected to increase by 4 percent by the end of the year due to reopening economic sectors after the shutdowns, âIrsheid told the Jordan Times on Sunday.
According to Irsheid, the level of economic growth is expected to return to where it was over the next two years.
âDespite the current growth, the numbers are still lower than they were in 2019, but next year is expected to be much better than this year,â he said.
The numbers will likely start to return to where they were before the pandemic, Irsheid said.
He stressed the importance of opening the borders with Syria for Jordan, as trade will improve, which will help the economy âconsiderablyâ.
Eyad Abu Haltam, board member of the Amman Chamber of Industry, said the improved economic growth shows that the national economy is returning to its former state.
He expects growth in the third quarter of this year to be better as well, Jordanian news agency Petra reported.
Abu Haltam pointed out that the construction sector, which has achieved the highest growth rate, is evidence of the increased demand for real estate. It also increases demand in many other related sectors, especially the industrial sector, according to Petra.
âThe pursuit of growth requires effective plans on the part of the government, in partnership with the private sector, and rapid implementation of the government’s priority economic program, particularly with regard to the establishment of a support for the industrial sector, which will help increase exports and reduce mining operations. costs, âAbu Haltam told Petra.
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