The problem is that these shocks come at a time when the global economy cannot withstand further pressures. Since the COVID-19 pandemic, the world has been living in a state of uncertainty, starting with supply chain disruptions, then rising energy and food prices, wars and geopolitical tensions, leading to high inflation rates and interest rates that have remained for years at levels that affected investment, consumption, and growth.
Therefore, the danger lies not only in rising oil prices, but in the chain of effects that can result from them. Higher energy means more expensive production and transport, more expensive transport means more expensive goods, and more expensive goods mean new inflationary pressures, which may ultimately mean interest rates remaining high for a longer period, and thus more pressure on the global economy.
However, amidst this picture, Jordan's experience seems different in an important aspect, which is that the crises the world has gone through over the past years did not turn into shortages in local markets, but rather pushed the Kingdom to build greater resilience in energy, trade, supply chains, and strategic reserves.
Jordan, by virtue of its limited resources and reliance on imports, could have been one of the economies most affected by these shocks, but it succeeded in maintaining the stability of its markets and providing goods, and also maintained inflation rates considered among the lowest globally, which would not have happened without the existence of economic and monetary policies and proactive measures to deal with crises.
In conclusion, the world today is between two straits, but Jordan must not be between them; rather, it must be able to build its own path, benefiting from its location, stability, and ability to manage crises, because the coming phase will not be for those who wait for crises to end, but for those who prepare well for the next crisis.
