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The Jordanian Economy in a Strained Regional Climate

by Imke Haase, Dr. Otmar Oehring
As the crises in Syria and Iraq erupted and borders have been shut down, Jordan has lost two important import-export markets. Also transit trade, connecting Lebanon and Turkey to GCC markets, has suffered significantly. In order to discuss the social and economic impacts of the crises and to identify alternatives and opportunities, KAS Jordan Office in cooperation with al-Quds Center for Political Studies organized a workshop on the 14th of November in Amman.

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Objectives

The ongoing conflicts in Syria and Iraq have aggravated the economic situation in Jordan. On the one hand, this is related to the large number of Syrian refugees in Jordan, which constitutes a significant burden for the resource-poor country, particularly on the municipal level. On the other hand, it stems from the fact that trade between Jordan and its two neighboring countries, Syria and Iraq, has come to a complete standstill due to the border closures. Hence, Jordan has not only lost two important import-export markets but also transit trade, connecting Lebanon and Turkey to GCC markets, which has suffered significantly. So far, however, concrete alternatives have not been found. This contributes to a further weakening of the domestic Jordanian economy, which remains heavily dependent on external sources of funding, mainly from Saudi Arabia and the United States.

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