JCC president urges gov’t to prepare for possible global economic downturn

AMMAN — President of the Jordan Chamber of Commerce (JCC) Nael Kabariti on Saturday called on the government to take precautions against a possible global economic downturn in 2022, stressing that "there are global indicators in this direction".

Chairing the JCC General Assembly meeting for 2020, Kabariti said that these developments require efforts to address difficulties facing the national economy, pointing to the government's reform decisions that aim to stimulate economic growth, in particular the move to restructure customs tariffs, the Jordan News Agency, Petra, reported.

Kabariti also said His Majesty King Abdullah's message forms a roadmap of progress towards a better future for Jordan, stressing the need to implement its economic content through a "real" public-private partnership.

In addition, he referred to the commercial sector’s demands that have not been met and called for greater urgency in fulfilling them, criticising some decisions of official institutions that contradict the government's approach towards economic reform.

Highlighting the commercial sector's belief in Jordan's capability to overcome hardships and challenges, Kabariti said that creative solutions should be made to overcome the obstacles facing the Kingdom's economic activities by pumping more cash into the economy, enhancing citizens' buying power and postponing bank loan installments.

In this regard, he called for revamping Jordan's tax system by slashing sales taxes and providing incentives for areas that are still suffering as a result of the pandemic, especially tourism, foreign investment attraction and support for local investors.

The COVID-19 consequences affected the overall indicators of the national economy, which decreased by 2.2 per cent during the third quarter of 2020, compared to a growth of 1.9 per cent during the third quarter 2019, he noted.

Kabariti said that the hard-hit economic sectors that posted negative growth rates during the third quarter of 2020 included hotels, restaurants, transport and warehousing, all of which are service sectors that make "significant" contributions to the GDP.

Kabariti praised His Majesty King Abdullah's efforts to manage the various aspects of the COVID-19 crisis and his continuing directives to the government, adding that his interventions have helped avoid heavier economic losses while sustaining economic productivity.