Financial crises and it’s effects on Jordan DR. NEDAL AL AZZAM PREPARED BY: ABEER AL-SOURANI
Overview Reasons of financial Table about macroeconomic indicators The impact of the economic crises on Jordan ( energy sector - transportation sector - Communications sector - Tourism sector - Industrial sector )
Reasons of financial crises Mistake in expectatio ns and forecasts Fraud and scams un financial crises Bad governmen t regulations Lack of human farsightedn ess Accounting crises Invest or borrow other country’s currency
The impact of the economic crises on Jordan the most important result of the global financial crisis : 1. The increasing of the budget deficit 2. the increase in the volume of domestic and external borrowing, which in turn raises the volume of indebtedness and increases its ratio to GDP, making it difficult to comply with internationally agreed standards. The gross domestic product (GDP) registered a real growth of 3.2 percent in the first quarter of this year, compared with a growth rate of 8.6 percent during the same period of 2008, down 5.4 percentage points. 3. Another effect of the crisis has been the decline in the private sector's ability to create new jobs, resulting in unemployment returning to 13 percent after falling to 12 percent last year, especially with the entry of vital projects in the real estate sector. . the President of the Association of Investors Housing Sector Engineer Zuhair al- Amri said that the global economic crisis has affected the real estate sector in the Kingdom is in avoid buying and the banks more restricted in financing facilities. He added: The reading of real estate indicators in the first months of this year showed the impact of sales of real estate despite the fall in prices ranging between 10-15 percent. He said the crisis in the sector had begun to deepen in the Kingdom, with real estate trading down 38 percent while investors cut property production by 50 percent by the end of the year. . According to official statistics, real estate trading in the Kingdom has declined by 38 percent since the beginning of the year 2009 until the end of August, despite measures taken by the government to activate the sector to reduce the waiver fees 2.5 percent. The volume of real estate trading during the first eight months of this year was 2785 million dinars compared to 4469 million dinars for the corresponding period last year.
A study conducted by the Parliamentary Budget Office to Said that: 1. gross domestic product (GDP) registered a real growth of 3.2 percent in the first quarter of year 2009 compared with a growth rate of 8.6 percent during the same period of 2008, down 5.4 percentage points. 2. It pointed to other factors that showed the impact of the negative crisis on the national economy represented by the decrease in the number of companies registered with the Ministry of Industry and Trade in the first half of year 2009 by 14 percent to 4137 companies compared to 4811 companies in the first half of 2008 as
- Winter '11
- Subprime mortgage crisis, Financial crisis of 2007–2010, Bank run