The Jordanian economy has suffered significantly from protracted conflicts in the region, in particular in neighbouring Syria, and most recently also in Israel-Gaza and in the Red Sea area. Since the commencement of the war in Syria, the Jordanian economy has been impacted by a large inflow of Syrian refugees, which has increased pressure on Jordan’s fiscal position, public services and infrastructure. In addition to regional instability, the macroeconomic and fiscal challenges related to the COVID-19 pandemic in 2020-2021, commodity price developments following Russia’s invasion of Ukraine in 2022, high exposure to trade fluctuations and the increase in borrowing costs for emerging markets globally continued to weigh on the Jordanian economy. As a result, Jordan experienced an economic contraction in 2020, followed by a slow economic recovery, as unemployment increased significantly in 2020 and remained high, and new fiscal and external financing needs emerged.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
