Impact of COVID-19 on the Jordanian economy: Economic sectors, food systems, and households

Abstract

Global economic growth projections for 2020 have been revised downward, reflecting a dramatic worldwide economic downturn that has been driven by lockdowns associated with the COVID-19 pandemic that sharply restricted workforce mobility and trade flows. Jordan is no exception to this pattern, as the International Monetary Fund (IMF) recently revised downwards it outlook on expected levels of growth for the Jordanian economy through 2020 (IMF 2020a).Economic growth in Jordan potentially will come to a halt this year. This comes as a result of the COVID-19 pandemic outbreak. Government imposed an economic lockdown which restricted non-essential economic activities and people's movement in order to contain the virus. A SAM multiplier model was used to estimate the economic impact of the lockdown and to explore potential recovery pathways for the Jordanian economy. Some of the key findings from this modeling exercise are:• National GDP is estimated to have fallen by 23 percent during the lockdown period. The services sector was hardest hit, seeing an estimated drop in output of almost 30 percent.• Food systems in Jordan are estimated to have experienced a reduction in output by almost 40 percent.• Employment losses during the lockdown were estimated at over 20 percent, mainly driven by job losses in services, followed by agriculture.• Household income fell on average by around one-fifth due to the lockdown, mainly driven by contraction in service sector activities, by slowdown in manufacturing activity, and by lower remittances from abroad.• GDP growth rates for Jordan's economy will continue to be negative through 2020, ranging from -5.7 to -7.4 percent, depending on the speed of economic recovery. A slow pace of recovery is expected.This economic recovery offers opportunities for fostering sustainable economic transformation and structural change. Economic policies and incentives should be directed towards more economic diversification, greater resilience to withstand economic shocks, and job creation.

The Effect of Covid-19 on the Economy of Jordan

“…Jordanian authorities have announced a complete lockdown until March 14, 2020, and have urged everyone to stay at home (Alharbi, 2020a). Jordan has enforced one of the world's strictest curfews to combat the spread of the coronavirus, forcing many people to stay at home and temporarily shutting down food markets and the pharmaceutical sector (Raouf et al, 2020;Alharbi, 2020b). Nonetheless, the safeguards and measures will undoubtedly impact the economy and the performance of other commercial and public sectors in the country.…”

Perbedaan Pergeseran Kontribusi Sektoral terhadap PDRB Menurut Kabupaten/Kota pada Masa Pandemi Covid 19 di Provinsi Jawa Tengah

“…Dampak pandemi Covid 19 yang mengakibatkan menurunnya kinerja beberapa sektor ekonomi di Provinsi Jawa Tengah sejalan dengan penelitian Raouf et al, (2020) di Jordania. Dari hasil pemodelan prediksi dampak di Jordania, adanya pandemi Covid 19 menurunkan sistem penyediaan pangan sebesar 40 %.…”

The impact of marketing agility on crisis management stages at five and four-star hotels in Jordan

“…Hotel occupancy rates have fallen as events across the globe continue to be canceled or suspended, and the COVID-19 pandemic has caused critical setbacks for hoteliers worldwide (Jiang & Wen, 2020). Hotels in Jordan also suffered severely from the COVID-19 pandemic lockdown, and there was a drop in demand for hotels by 85 percent (Raouf et al, 2020). This situation encourages hoteliers to act swiftly and take action to face several hurdles induced by crises.…”

“…The suspension of international flights and the imposition of a travel ban on tourists coming from other countries caused many tourists to cancel ticket and hotel reservations. The tourism industry saw a sharp drop in revenue and a drop in hotel demand of 85 percent (Raouf et al, 2020). These necessary measures hurt the growth of all economic sectors in Jordan, especially the tourism and hospitality industries, which depend mainly on international travelers.…”