Middle East and Central Asia > Jordan

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International Monetary Fund. Middle East and Central Asia Dept.
This Selected Issues paper explores the main obstacles related to low female labor force participation in Jordan. Lack of access to safe and reliable public transportation can hamper labor market choices for women. Gender-based legal restrictions may also prevent women from participating in the labor market. The analysis concludes that structural variables and regulations are the main drivers of the gender gap in participation and employment outcomes in Jordan. Based on the regression results, there is a statistically significant relationship between the structural variables and regulations and the gap in both participation and employment. The results for Jordan are also compared with the Middle East and North Africa region. It finds that gender disparity in labor market participation in Jordan is not due to access to basic services such as education and health but is rather based on structural and legal impediments. Particularly, structural variables as well as regulations help explain the gap in participation rates between men and women.
International Monetary Fund. External Relations Dept.
Finance & Development, December 2017
International Monetary Fund. External Relations Dept.
Finance & Development, December 2017
International Monetary Fund. External Relations Dept.
Finance & Development, December 2017
International Monetary Fund. External Relations Dept.
Finance & Development, December 2017
International Monetary Fund. External Relations Dept.
This paper analyzes that although demands for political transformation commanded the world’s attention, those calls were largely motivated by unresolved socioeconomic issues. Demonstrators in the streets of Cairo and Tunis demanding bread, dignity, and social justice expressed widely held aspirations for basic economic rights, along with greater prosperity and equity. Almost seven years later, notable progress has been achieved in terms of public finance reforms. However, these reforms still have a long way to go to reduce disparities in the distribution of wealth within most countries of the region or narrow the development gaps between them. Countries in the Middle East and North Africa now face a stark choice between short-term retrenchment and resolute pursuit of the long-term reforms needed to secure their future economic prosperity. Forsaking important economic adjustments needed to strengthen inclusive growth and modernize the state and private sectors would set the region back, possibly for decades.
International Monetary Fund. Middle East and Central Asia Dept.
This paper discusses the Syrian Refugee Crisis (SRC) and conflicts in Syria and Iraq have weighed on investor sentiment, tourism, and exports but the influx of Syrians is likely to have increased aggregate demand. Labor market conditions deteriorated after the massive influx of refugees and nontradable prices accelerated. The balance of payment suffered pressures on the non-oil current account, owing to lower exports of goods and services and higher imports. The SRC has increased the direct fiscal costs persistently by above one percent of GDP, which could double after counting for quality and capital deterioration. The negative impact is decreasing as the influx of Syrian refugees slowed and the stock pushed up aggregate demand. The influx of more than 10 percent of Jordan’s original population may have certainly increased consumption, particularly, over time as the incomers settled and the likelihood of returning to their home country diminishes. Unemployment grew the most in governorates that host most of the refugees.
Mr. Bjoern Rother
,
Ms. Gaelle Pierre
,
Davide Lombardo
,
Risto Herrala
,
Ms. Priscilla Toffano
,
Mr. Erik Roos
,
Mr. Allan G Auclair
, and
Ms. Karina Manasseh
In recent decades, the Middle East and North Africa region (MENA) has experienced more frequent and severe conflicts than in any other region of the world, exacting a devastating human toll. The region now faces unprecedented challenges, including the emergence of violent non-state actors, significant destruction, and a refugee crisis bigger than any since World War II. This paper raises awareness of the economic costs of conflicts on the countries directly involved and on their neighbors. It argues that appropriate macroeconomic policies can help mitigate the impact of conflicts in the short term, and that fostering higher and more inclusive growth can help address some of the root causes of conflicts over the long term. The paper also highlights the crucial role of external partners, including the IMF, in helping MENA countries tackle these challenges.
International Monetary Fund. Middle East and Central Asia Dept.
This paper discusses Jordan’s Request for an extended arrangement under the Extended Fund Facility (EFF). The economic growth of Jordan remains below potential. Unemployment is high, particularly for youth and women, and the refugee crisis is weighing on the economy and public finances. Real GDP growth is projected to increase to 2.8 percent in 2016, supported by lower oil prices relative to their 2014 peak, an accommodative monetary stance, and some recovery in private investment. In view of Jordan’s balance of payment needs, the policy actions already taken, and the comprehensive package of adjustment measures proposed by the authorities, the IMF staff supports the authorities’ request for an extended arrangement under the EFF.
International Monetary Fund. Middle East and Central Asia Dept.
This Selected Issues paper assesses the importance of oil and interest rate spillovers for Saudi Arabia. Oil prices have fallen by more than 40 percent since mid-2014 while the Federal Reserve is expected in the coming months to begin raising its policy rate at the beginning of a gradual tightening cycle. Given the importance of oil to the economy and the peg of the riyal to the U.S. dollar, these are two key developments for Saudi Arabia. Although a temporary drop in oil prices would likely have little effect on the economy and banks given the financial cushions that have been built-up, a longer-lasting period of low oil prices would have a more significant impact.