Analyses & Studies
Jordan Economic Monitor | Weathering the storm
"World Bank Group"
The COVID-19 pandemic has created a severe global recession. The global economy, after showing a moderate recovery in 2019, is currently reeling from the Coronavirus (COVID-19) pandemic which, besides taking a toll on human life, has pushed the global economy into the worst recession since the Great Depression due to the lockdowns aimed at controlling the spread of the virus.6 Starting as a supply shock, the pandemic has triggered an unprecedented demand shock that led to significant decline in global commodity prices, especially oil prices. The lockdowns have also amplified pre-existing vulnerabilities such as weak governance, large labor market informality, and limited fiscal space. This constrained fiscal space, for example, limits countries’ room to maneuver with already high levels of debt and tightening external financing conditions.
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