COVID-19 will further set back Jordan’s reform efforts

Subject

Economic outlook post-COVID

Significance

In recent days, the government has begun gradually to roll back its stringent lockdown measures, imposed to combat the spread of COVID-19. These restrictions had gone a long way towards limiting the spread of the virus and offering some protection to the most vulnerable in society, but they have further increased the country's dependence on external support. Although easing the restrictions will help the business sector begin its recovery, the kingdom's progress on implementing economic reforms is under threat.

Impacts

• The easing of the restrictions will do little to alleviate the wider impact of policy responses to the pandemic on the economy.
• Jordan faces a potential loss of foreign aid as other countries tighten their own budgets.
• Financial support from the international community for refugee communities will also diminish, placing further demands on the government.
• The services industry, which was intended to be an engine of growth, will be hardest hit and will take many years to recover.
• Public patience may soon wear thin and lead to a new round of protests expressing discontent with the economic situation and corruption.