The Impacts of COVID-19 on the Jordanian Economy: Evidence from the Middle East

The main objective of this study is to investigate the effects of COVID-19 on a developing nation, namely Jordan. The study conducted an extensive examination of the effects of COVID-19 on the country’s gross domestic product, inflation, unemployment, poverty, and the stock market through the adoption of a desk research study method, with data collected from government websites, international websites, online statistics, international and locally published reports, as well as from previous studies. Based on the findings, the crisis of the COVID-19 pandemic has brought about significant economic and financial changes in Jordan. It negatively affected the gross domestic product, and employment in the country, triggered panic buying, discrepancies in domestic production and distribution, and import restrictions, resulting in inflationary economic pressure that was compounded by headline inflation. Additionally, the COVID-19 pandemic has significantly impacted the Amman Stock Exchange as well as the macroeconomic aspects; based on the findings, poverty in the country may be worsened by the pandemic, which represents a novel challenge in light of the type and quality of life in Jordan. Hence, the government of Jordan has been using measures through varying strategies for short-term adaptation and long-run survival. Correspondingly, this study has several implications for policymakers who are concerned with building a robust economy in the face of the pandemic. To the best of the authors’ knowledge, this is a pioneering work that examines the impacts of COVID-19 on the economy of Jordan, thus, providing an enriching insight into the awareness of COVID-19 impacts on the economic development of Jordan.