jordan pulse -
Jordan has never been immune from the global crises and challenges that have affected the global economy, but it has been able to succeed, through the strength and solidity of the national economy, and the financial and monetary policy led by the Central Bank. Recording an inflation rate of 2.13 percent, which is one of the lowest inflation rates in the world.
The Governor of the Central Bank of Jordan, Dr. Adel Sharkas, had previously confirmed that Jordan’s commitment to financial and monetary reforms contributed to maintaining economic stability. National Bank, and for this reason the Kingdom recorded an inflation rate that is considered among the lowest in the region and the world.
The general consumer price index “inflation” rose From the beginning of this year until the end of last November, by 2.13 percent, reaching 108.95 points, compared to 106.68 for the same period last year. Former Minister of Finance, Dr. Muhammad Abu Hammour, confirmed to the Jordanian News Agency (Petra) that inflation is currently a global phenomenon due to the economic conditions that the world is going through, including economic crises and wars, especially the consequences of the Corona pandemic, the Russian-Ukrainian war, and finally the war on Gaza.
He said that the measures taken by the Central Bank were effective and were able to curb inflation and reduce its rate clearly, indicating that most countries in general seek to maintain an inflation rate of around 2 percent, which is the rate that helps achieve Economic growth and job creation are considered a healthy phenomenon. This means that Jordan has been able to maintain low inflation rates compared to other countries, some of which recorded double-digit inflation rates.
He added that the sharp rise in inflation leads to many Of economic difficulties and challenges, including the decline in the purchasing power of the local currency and the decline in the standard of living of citizens, in addition to the rise in interest rates, which means a negative impact on investment and an increase in the cost of local products, indicating that monetary policies usually work to combat runaway inflation through the tools and procedures it takes. The Central Bank in order to maintain monetary stability and achieve stability in the general level of prices.
Abu Hammour pointed out that the anti-inflation policy in Jordan has achieved positive results, and we need to continue implementing these policies, taking into account the provision of appropriate conditions. To improve the investment environment and reduce financing costs to stimulate quality investments that generate job opportunities and improve the lives of citizens.
For his part, the representative of the food, supply and livestock industries sector in the Jordan Chamber of Industry, Muhammad Walid Al-Jitan, said that despite the rise in the consumer price index For the food and non-alcoholic beverages group, which recorded an increase from the beginning of this year until the end of last month, which did not exceed 0.5 percent, compared to the same period last year. However, there are many items within that group that achieved a decrease in the price level during the same period, most notably Dry and canned vegetables and legumes, fruits, nuts, meat, poultry, fish and other food products.
He added that we did not witness any significant increases in national food prices during the current year, but rather they remained close to their levels during the past year, despite the national food industries’ heavy reliance on importing raw and primary materials from abroad and their correlation with global prices that It witnessed major fluctuations as a result of the global repercussions and crises, in addition to the rise in local production costs.
Al-Jitan pointed out that this modest response in national food prices is due to a number of reasons, most notably the sufficient strategic stock for a number of basic food industry products. This confirms the stability of the local market, in addition to the intense competitiveness enjoyed by the food products sector within the local market, contrary to what is being promoted.
He stated that to ensure continuity at this pace, there is an utmost necessity to begin work. To build a strategic plan to avoid crises and the surrounding repercussions on the national economy and its sectors as a step that can contribute to improving the economic situation, growth and stability in light of the current conditions and to follow the directives of His Majesty King Abdullah II, which reflected his insightful vision and outlook for the future to achieve economic and food security.
Al-Jitan, who also holds the position of Vice President of the Jordan Chamber of Industry, confirmed that this requires us today to take immediate measures and hedging plans, and to focus on increasing the strategic stock of basic commodities immediately and search for alternative methods for the supply chains of strategic goods and products so that we are prepared for all... Future scenarios, and mitigating the impact of any event.
He pointed to working to increase support at the level of decisions and laws, finding solutions to issues of costs and energy, and accelerating the project to extend gas to all cities and industrial clusters, because of its fundamental factor. In reducing costs and raising competitiveness, in addition to enhancing sustainable development and alternative energy processes, and providing incentives and capabilities to enable the economic sectors and the industrial sector to attract more local and foreign investments, with the aim of avoiding any impacts that might affect them.
Al-Jitan pointed out that To the need to benefit from the draft budget for the year 2024, which included many items related to enhancing the strategic stock of many basic foodstuffs (raw materials), such as grains, and this is an incentive to develop and support the food industries, and thus enhance the preservation of the sustainability of the food supply chain and achieve greater self-sufficiency in Many basic food commodities, which will constitute a positive factor in enhancing the competitiveness of national products in local and global markets.
He stated that the consumer price index for the group of dairy products and eggs witnessed an increase during the current year, reaching 5.95 percent by the end of last November, compared to the same period last year, attributing this to the many repercussions to which these industries were exposed. There will be a significant increase during 2023, most notably the foot-and-mouth disease, which caused a decline in production quantities and an increase in the prices of cow’s milk, which is a basic production input in the dairy and cheese industries and their products. He continued, "Despite this, the food industry sector in Jordan remains a source of many diverse food items capable of meeting the basic needs of the local market with the required quality and quantities, and this is confirmed by the coverage rate of the national food industries for more than 60 percent of the size of the local market, which led to that response." Modest price levels.
Al-Jitan noted that the production of some food commodities has reached the point of self-sufficiency locally, such as dairy products and their products, table eggs, chicken, processed meat, baked goods, sweets, and others, in addition to semi-self-sufficiency in some industries such as tahini and halva. And canned goods, etc., indicating that all of this stems from the huge production capabilities and the ability to meet and meet the needs of citizens for basic food commodities.