Amman, March 30 (Petra) -- Minister of State for Economic Affairs Muhannad Shehadeh said the government has adopted a cautious and gradual approach as the basis for economic decision-making in response to current regional conditions, stressing that there are no issues in supply chains and that implementation shifts from one plan to another as the impact of the war escalates.

"The economic situation is proceeding smoothly, and we have plans to deal with the repercussions of the war, but it is not known when it will end. Therefore, gradual decision-making is key, along with taking swift responses whenever necessary," he said.

Shehadeh affirmed the government’s commitment to transparency with citizens, tightening oversight, and controlling inflation and markets, noting that if the government is forced to impose price ceilings, it will do so.

He said this is not the first time the Jordanian economy has faced external shocks, citing the global financial crisis, the Iraq war and the coronavirus pandemic over the past 25 years. "Everyone who has bet on the resilience of the Jordanian economy has won. Our economy is flexible and capable of absorbing crises and emerging stronger. Our leadership is wise, and our people are aware," he added.

He said that at the beginning of Prime Minister Jaafar Hassan’s term, the economic vision focused on growth and stimulating capital projects as the backbone of the economic modernization vision. Over the past period, agriculture grew by 10 percent, industry by 5 percent, exports rose by about 10 percent, the capital market developed, and the stock market recorded growth of around 40 percent. Overall economic growth increased from 2.6 percent to 2.7 percent and then to 2.8 percent, with fourth-quarter results expected to be positive.

Shehadeh said the government faced two options: adopting a short-term emergency plan focused on monitoring food reserves, raw materials, and markets and maintaining supply chains, or shutting down sectors, moving to remote learning, and implementing restrictive measures that could stifle the economy, as happened during the coronavirus pandemic. Given the dynamic situation, the government chose the first option and took a set of decisions to protect citizens and maintain economic growth.

These measures included banning the export of essential products, prioritizing the Jordanian consumer, reaching understandings with other countries to use ports such as Tartous Port in Syria and ports in Egypt, waiving customs duties on increases in shipping costs, and directing the Customs Department to enhance the "green lane" for faster clearance of essential goods to ensure smooth supply chains.

He said Aqaba is operating at its best, with airports and crossings open, reaffirming that supply chains face no issues and that stock levels are strong.

On border crossings, Shehadeh said Jordan has kept its airspace open, drawing on lessons learned from previous external crises, while shipping activity through Aqaba continues, ensuring no disruption to supply chains. "We have Plan A, B and C, and we move between them as the impact of the war increases," he added.

Regarding energy prices, he said global energy prices have risen by more than 40 percent, but the government will use part of its reserves and apply a mixed pricing approach, stressing that it will not pass on the full increase in global fuel prices to citizens at this stage.

He said the main challenge is keeping inflation at reasonable levels, noting that global and regional inflation has already had an impact, with freight costs rising from 3,500 to 12,000.

Shehadeh said the world will face inflation, and the government has taken gradual measures to absorb it, including supporting the military consumer corporation to supply citizens with essential goods, banning the export of key products, and engaging with industrialists to secure raw materials so that domestic factories can meet local needs at reasonable prices.

He added that the government will intensify market oversight, noting that the private sector is a national partner that has proven its responsibility in every crisis, though some violations exist and will be addressed through strict legal measures, as "citizens’ livelihoods are not subject to manipulation."

He called on the private sector to expand its data base, saying the government will work with it and encourage procurement at preferential prices, as every crisis presents an opportunity.

He added that financial flows will be monitored, noting that bank capital adequacy exceeds Basel requirements at 18 percent, foreign currency reserves increased over the past two months and are expected to rise further next month, and central bank reserves are in a strong position.

On capital projects, Shehadeh said they will continue at the same pace, with the National Water Carrier project nearing the conclusion of negotiations and expected to be signed soon. He added that the railway project is a key strategic initiative and has gained further importance, with advanced progress in its contractual procedures.

He said that during the current crisis, the Ministry of Investment issued two major tenders for infrastructure, sending a clear message that projects will continue in line with planned timelines.

Shehadeh called for examining the Jordanian model, saying it has proven effective in managing and overcoming crises, stressing that "there is no economy without security."

//Petra// AF

30/03/2026 22:51:19