JBA president urges loose monetary policy to fight recession

JBA president urges loose monetary policy to fight recession

President of the Jordanian Businessmen Association (JBA) Hamdi Tabbaa has called on the government to pursue loose monetary policy to address the decline in gross domestic product (GDP) and propel economic growth which slowed down in the wake of the coronavirus pandemic.

In a statement released on Monday, Tabbaa said the government is required to introduce measures necessary to regain confidence in the economy, stressing that self-reliance is a key lever to support the GDP and put growth back on an upward trajectory.

However, Tabbaa warned that the decline in GDP risks scarce job opportunities, limited purchasing power and less investments. He further added that the quarterly contraction in GDP growth threatens to deepen the current economic recession the Kingdom is facing.

Laying down proposals to address the slowdown, the JBA president said more tax cuts for sectors that contribute the most to GDP could be an option, calling for slashing production costs, especially in the industrial sector.

Another priority area according to Tabbaa is the ramping up of renewable and clean energy projects whether national or foreign.