Effect of Covid-19 in Jordan: Conceptual Analysis of Different Economic Sectors

Abstract

Jordan, similar to other nations around the globe, has been severely affected by the COVID-19 pandemic cut across Jordanian service, banking, insurance, and industrial sectors. The spread of the virus and attempts to control it have generated both social and economic turbulence, turmoil, disorder, uncertainty, and uneasiness in the country. The government of Jordan acted promptly in March 2020 by ordering a national lockdown to mitigate the impact of COVID-19 on these economic sectors. The COVID-19 has had both direct and indirect negative effects on these sectors, which are projected to vary from the short to the long term. It is possible to measure the short-term effects as seen in this conceptual work. Some of the short-term effects anticipated include economic recession, high unemployment rate, high inflation, etc. In conclusion, these sectors will continue to encounter challenges because of the ongoing economic slowdown in Jordan due to lockdown and other social measures put in place by the government. Currently, there is yet to be a tentative and complete statistical prediction of the negative economic effects and cost of COVID-19 in Jordan, particularly on its sectors of the economy.

Short-and Long-run Influence of COVID-19 on Jordan's Economy

“…Because of its successful contribution to the gross national product, Jordan's public sector with industrial shareholdings plays a central role in the Jordanian economy (Saleh et al, 2023). The COVID-19 pandemic has brought a slew of new challenges to Jordan's industrial sector, particularly those that rely on employees whose jobs cannot be remotely controlled (Shatnawi & Sakarneh, 2021). Jordan's government has tightened restrictions and implemented social distancing measures.…”

“…To help reduce the spread of the coronavirus and economic concern, certain key industrial firms have closed facilities and are considering downsizing. The industrial sector is a significant contributor to Jordanian GDP, accounting for approximately 22% of total GDP in 2019 and employing over 239,000 Jordanians (Shatnawi & Sakarneh, 2021). The disruption has been exacerbated by widespread international trade restrictions imposed by many countries worldwide.…”

A novel framework for analyzing the impact of COVID-19 on entrepreneurial financial firms in Jordan

“…Despite the young, educated population and the vibrant startup scene, Jordan faces many challenges that hinder its entrepreneurial development, such as regional conflicts, water scarcity, unemployment, poverty and corruption (Zureiqat and Ostermeier, 2022). Moreover, the Coronavirus Disease 2019 (COVID-19) pandemic has posed a severe economic and social shock to Jordan and the rest of the world (Shatnawi and Sakarneh, 2021).…”