Amman: Minister of State for Economic Affairs Muhannad Shehadeh announced that the Jordanian government has adopted a cautious and gradual approach to economic decision-making amid the current regional conditions. He emphasized that there are no issues in supply chains, and that the government is prepared to shift plans as the impact of the war escalates.
According to Jordan News Agency, Shehadeh stated that the economic situation is stable, and plans are in place to handle the war’s repercussions, despite uncertainty about its duration. He highlighted the importance of gradual decision-making while responding swiftly when necessary. The government remains committed to transparency, controlling inflation, and overseeing markets. Shehadeh noted that price ceilings could be imposed if necessary.
He mentioned that the Jordanian economy has previously overcome external shocks such as the global financial crisis, the Iraq war, and the coronavirus pandemic. Shehadeh expressed confidence in the resilience of Jordan’s economy, attributing it to wise leadership and public awareness.
At the onset of Prime Minister Jaafar Hassan’s term, the economic vision focused on growth and capital projects. Recent data showed growth in agriculture, industry, exports, the capital market, and the stock market. Economic growth rose from 2.6 percent to 2.8 percent, with positive fourth-quarter results anticipated.
Shehadeh outlined two options for the government: a short-term emergency plan to monitor food and raw materials or restrictive measures like those during the coronavirus pandemic. The government chose the first option, taking measures to protect citizens and maintain growth. These include banning essential product exports, using Syrian and Egyptian ports, waiving customs duties on shipping cost increases, and expediting essential goods clearance.
He assured that Aqaba, airports, and crossings are fully operational, with no supply chain disruptions. Jordan’s airspace remains open, and shipping through Aqaba continues smoothly. The government has contingency plans to adapt as the war’s impact increases.
Regarding energy, Shehadeh noted a 40 percent rise in global prices, but the government will use reserves and mixed pricing to avoid passing the full increase to citizens. The main challenge is controlling inflation, which has been affected by rising freight costs.
The government has taken measures to absorb inflation, including supporting the military consumer corporation, banning key product exports, and collaborating with industrialists to secure raw materials. Market oversight will intensify, with strict legal measures against violations.
Shehadeh urged the private sector to expand its data base and the government will support procurement at preferential prices. He noted that bank capital adequacy is strong, foreign currency reserves are increasing, and central bank reserves remain robust.
On capital projects, Shehadeh confirmed they will continue as planned. The National Water Carrier project is nearing the conclusion of negotiations, and the railway project is progressing. Two major infrastructure tenders were issued, signaling commitment to ongoing projects.
He advocated for examining Jordan’s model for managing crises, affirming that “there is no economy without security.”