DEAD SEA -- Prime Minister Abdullah Ensour on Saturday said in light of the shortage in resources, it will always remain a challenge to meet the aspirations of the public.
Speaking at the World Economic Forum (WEF) on the Middle East and North Africa being held at the Dead Sea, the premier said: "Economic stability can only be achieved when we address the gap between the different economies between the Arab states and work within a comprehensive plan that has broad objectives."
"The local economy declined to around 2 per cent [in GDP growth] after it was around 6 per cent in 2009, driven by the international and regional economic crisis. In Jordan, the economy was hit by significant shocks represented in the fluctuating flow of Egyptian gas and the hosting of hundreds of thousands of Syrian refugees who are still flowing into the country due to the violence in their country," Ensour said at the session, which was moderated by WEF founder Klaus Schwab.
Ensour added that the government has taken important decisions to address the deficit in the budget, which hopefully will lead to minimising the deficit from 9.7 per cent in 2012 to 8.7 per cent this year.
He noted that the government will also work on increasing capital expenditures from JD680 million last year to around JD 1.3 billion by 2016 in order to stimulate the economy.
The remedial plan is working, according to Ensour.
"Our national economy has shown some positive indicators," he said, stressing that the government will pursue its economic reform programme to "pave the way for a stronger and more confident economy in the future capable of attracting foreign investments".
In his opening remarks, Schwab said the tragic situation in Syria has had a direct impact on Jordan, adding that WEF is committed to supporting all efforts that aim to address the humanitarian crisis in Syria, which, he said, represents a priority in the programme of this conference.
"The region is living in a decisive phase and finding jobs represents a challenge that needs to be discussed between politicians, businessmen and youth themselves. There are more than 100 million young people aged between 15-29 in the Arab world, representing around 30 per cent of the Arab population," Schwab said.
Group Chief Executive Officer of the National Bank of Kuwait Ibrahim Dabdoub, who also spoke at the session, said that achieving an average economic growth in the Arab area between 4-5 per cent is a real challenge, especially since each country has different economic and social challenges.
"That is why the region needs to work collectively and exert greater and coordinated efforts in order to identify the challenges of each country and find solutions capable of meeting those obstacles that hinder the growth of Arab economies. The region first and most needs to see economic stability before it engages in any economic plans," Dabdoub said.
The banker stressed the need for genuine economic and political reforms and confidence building between the private and the public sectors.
Politically, Dabdoub said democracy in the Arab region is facing serious obstacles attributable to the decades-long political legacy of the ruling regimes, adding that local communities are yet to develop as their mechanisms of participation in the political process in their countries is still below expectations.
© Jordan Times 2013
