The Levant: Problematic politics stifling growth
This week we take a deep dive into the Levant, where politics and diplomacy are vital for the economies of both Lebanon and Jordan.
Lebanon lacks desperately-needed reform measures thanks to its current leadership. Structural renovation is necessary, and although some changes are currently underway, the prospects for long-term growth will remain slim if the same hands remain at the helm.
Diplomacy has accelerated growth in Jordan amid the kingdom’s efforts to deepen trade ties with international partners. While prospects for further growth in Jordan are certainly more promising than in Lebanon, success is not a foregone conclusion; potential scenarios in which growth may be hampered involve high unemployment, low labour force participation and a further wave of COVID-19. Meanwhile, King Abdullah II continues to consolidate his power through constitutional reforms.