Reducing production costs top solutions to combat unemployment—IMF

AMMAN — Jordan’s youth unemployment issue has become more complicated with the COVID-19 pandemic, Jihad Azour, director of the International Monetary Fund (IMF) Middle East and Central Asia Department, said on Thursday.

Responding to questions by Al Mamlaka TV during a press conference in Washington, Azour said that the best way to combat unemployment is through economic reforms, calling for a reduction of production costs to stimulate competitiveness and support investment and economic growth in Jordan.

Stimulating investment and improving public finance administration are good ways to allow the Kingdom maintain public resources and combat Jordan’s amount of debt, he said.

Replying to questions about IMF's support to the Economic Modernisation Plan, he said that Jordan has launched programmes and projects to improve the business environment, expressing hope for these programmes to address unemployment in the Kingdom.

Azour added that Jordan's top priorities include combating unemployment, ensuring women's participation in the economy and protecting the population from the shocks of increasing food, goods, gas and fuel prices.

The IMF expects the economic growth forecast for Jordan to stand at 2.4 per cent in 2022, compared with 2.2 per cent for 2021, at a time the fund expected the global economic growth to stand at 3.2 per cent.

In its World Economic Outlook report, the IMF on Tuesday expected Jordan's economy to grow by 2.7 per cent next year, and by 3.3 per cent five years from now.

The inflation rate for 2022 is expected to measure around 3.8 per cent, while the IMF lowered its 2023 forecast to 3 per cent, and its 2027 prediction to 2.5 per cent.