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Economy | Germany - In the face of Corona, how did the German economy outperform Europe?

Sun ,29 May 2022
The Jordanian industry maintained the permanence of the flow of its products to the export markets, despite the official figures indicating that the value of local industrial exports decreased slightly, by 1 percent during the first half of this year, compared to the value of exports for the same period of the previous year, which amounted to 1702.3, million dinars, compared to 1714,3 in 2019. Industrialists attribute this stability to the Kingdom’s industrial excellence during the pandemic, and the ability of some of its industrial sectors to deal innovatively and flexibly with the difficult conditions imposed by the comprehensive and partial bans, despite the decline in global demand for non-essential goods, and the restriction of the movement of supply chains between countries of the world. Royal directives and initiatives focused on supporting the productive sectors, especially the industrial sector, as His Majesty King Abdullah II visited some facilities that have proven successful in working during the pandemic, due to their flexibility in meeting the needs of the Kingdom, which gave the sectors great responsibilities to raise the level of industry, including Meets royal ambitions and directives. The representative of the leather and textile industries sector in the Jordan Chamber of Industry, Ihab Al-Qadri, told the Jordan News Agency (Petra), that the size of the industrial sector’s losses cannot be accurately estimated at the moment, as a state of “ambiguity” prevails on the scene of the local economy, and the possibility of the return of the full economic movement or not This is related to the extent to which the virus is contained and able to be controlled, and the difficulty of predicting the period in which the virus vaccine will spread globally. Al-Qadri indicated that the industrial sector is still affected by the repercussions of the comprehensive ban imposed at the beginning of the crisis, as the export levels, which constitute about 93 percent of the industry, declined, and the financial capabilities of small and medium enterprises declined, forcing them not to fulfill their obligations, in addition to the challenges of obtaining materials A priority necessary for the continuity of production, such as the increase in its costs, or the interruption of external supply chains, which led to a decline in sales, as a result of weak demand, especially for non-essential goods. He added that the industrial sector is constantly working on sectors that produce basic commodities during the crisis, in support of the strategic stockpile and to meet the needs of citizens, such as foodstuffs, medicines, medical and health supplies, sterilizers and detergents, and the packaging sector. It was also affected by the non-essential sectors, which stopped working during the pandemic for more than a month, and some of them suffer from the repercussions of this even after returning to work, due to weak local and global demand, such as secondary food industries, plastics and rubber, wood and furniture industries, construction industries, leather and knitting, and textile industries. Engineering and electrical. Al-Qadri pointed out that the industrial production index decreased by more than 20 percent during the first half of this year, compared to the same period last year, as a result of the decline in the industrial production index by 21.5 percent, whose relative importance constitutes about 86 percent of the total industrial production. This significant decline is mainly attributed to the consequences of the closure period witnessed by most industrial sectors during the month of April, and this is confirmed by the decline in the production index for the month of April by 88 percent compared to the same month last year. For his part, the industrialist and economic analyst, Engineer Musa Al-Saket, confirmed that the number of industrial sectors in Jordan is 10, of which 7 sectors were affected, due to a number of challenges, such as the difficulty of financial flow, due to the delay of some employers in obtaining financing loans, and the closures resulting from the comprehensive ban in The beginning of the pandemic, in addition to some of them not receiving loans at all, and some industries lost foreign markets and canceled their foreign orders, and a market loss due to the decline in the purchasing power of citizens. As for the sectors that were distinguished during the pandemic, they are the food industries, some chemical industries and the pharmaceutical industries, and the percentage of employment in them increased, unlike the rest of the sectors, and they obtained the opportunities created by the Corona pandemic. The founder of the industrial giant, Hassan Al-Smadi, explained that the purchasing power of citizens decreased due to the decrease in their salaries, export difficulties, high shipping costs, and the accumulation of debt due to a lack of liquidity, all of which are factors that slowed the capital cycle, which reduced profits and increased losses. He added that the Corona pandemic increased the suffering of the industrial sector, as receivables accumulated on the facilities, salaries were delayed, and production lines stopped, which increased the increase in operational costs, noting that the sector's return to work was gradual fraught with health and economic concerns together. Al-Smadi called for setting stricter conditions for import, to allow the local industry to expose itself in the local market, especially since most countries turned to the internal local industry, due to the difficulties of import and export, so the search for new markets became very difficult in light of the Corona pandemic, and the producer price index decreased Industrialists, during the first seven months of this year, increased by 7.86 percent, to 110.76, compared to 120.21 for the same period in 2019. In its monthly report on foreign trade in Jordan, the Department of Statistics indicated that the value of total exports during the first half of this year amounted to JD2523.3 million, a decrease of 7.3%, compared to the same period in 2019. The value of national exports during the first half of this year amounted to about 2211,6 million dinars, a decrease of 3.5 percent compared to the same period in 2019, and the value of re-exports amounted to 311.7 million dinars during the first half of this year, a decrease of 27.3 percent, compared to the same period of year 2019. The total volume of Jordan's merchandise foreign trade, which is national exports, re-exported goods and imports, during the past year amounted to 19.63 billion dinars, according to a study conducted by the Chamber of Commerce.