Assessing the Sustainability of the Jordanian Public Debt Deficit

Abstract

This study analyzes the public debt gross domestic ratio of Jordan; this analysis covers the period of the last ten years. The reason to select this period is to analyze the issue of the current era which can be addressed by the contemporary possible solutions. One more important reason to select this period is the pandemic. The purpose of this paper is to analyze the impact of the pandemic on the deficit in public debt.This study identifies the different phases of public debt in Jordan during the period of the last ten years. This study identifies different dynamics of public debt and how the Jordanian government adjusted the fiscal policies to avoid fluctuations.The fluctuations in the public debt are observed and the other variables which are critical include economic policies and their role in the fluctuations in the public debt. Public debt sustainability is affected by the policies during different times. The sustainability of public debt is linked with the fiscal and monetary policies adopted by the government and these policies impact the economy which causes different periods.The data for the analysis consists of ten years. The longer span of data enables researchers to have robust results. The data is fresh and has the latest issue faced by the economy. The longer set of data provides more insight but the business environment is dynamic because of radical changes in the business environment from technology to geopolitical. This study provides contemporary issues that cause issues in the domain of public debt for the Jordanian government.