Jordan

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Area: 89,342 sq. km

Population: 6,824,000 (2014, est.)

Capital: Amman

GDP: USD 35.9bn (2014, est.)

Exports: USD 8.556bn (2013, est.)

Imports: USD 22.8bn (2013, est.)

Currency: Jordanian Dinar (JOD)

Exchange rate: 1 USD = 1.05 JOD (01/2016)

 

Economic Structure and Development:

Jordan had a GDP per capita of USD 5,900 in 2011 and is considered by the OECD to be an upper middle-income country. Economic reforms launched in the 1990s achieve their important economic and social development objectives. From 1992 to 2000, enrolment rose from 20% to 28% in tertiary education and from 76% of 85% in secondary education. Additionally, the gross national income declined by 2.2% in 1990, whereas by 2000 it was rising my 4.8%, marking a significant improvement in economic growth. Privatisation, international economic integration as well as budget and financial sector reforms were part of these reforms. Among these efforts were the accession to The World Trade Organisation in 2000, the rectification of a free trade agreement with the United States in 2001 and an association agreement with the European Union in 2002. Based on these measures, the country achieved macroeconomic stability. Moreover, human development indicators have improved over time, with the real GDP growth averaging 6% from 2002 to 2011. Further structural economic reforms nevertheless necessary in order to alleviate the persistently high unemployment rate of 13%, especially among graduates, of whom more than 30% are jobless. Other issues include a large share of the population that lives just above the poverty line as well as the overall fiscal and external vulnerability. Jordan remains dependent on foreign assistance in remittances, which are utilised to counterbalance external pressures from rising oil and food imports. In 2012 it was estimated by the Ministry of labour is that a total of 339,755 Jordanians reside abroad – 4.5% of the total population. The current regional unrest in its neighbourhood countries – especially Syria – and the adverse global economic environment risk diluting the economic development achievements by Jordan over the last decade and pose a threats to the social and economic stability of the country in the short and medium-term.

In 2013 economic growth was estimated at about 3.3%. Since 2010, the unemployment rate in Jordan, one of the countries most important future challenges, has been approximately 12.5%. Projections for 2012 and 2013 indicated that it remained steady at 12.2%. The forecast inflation rate for 2013 was 5.9%.

Outlook:

Jordan offers relative stability and reliability to foreign partners, both in political and economic terms. The area of renewable energy should be a particular focus of economic corporation. By 2020 Jordan plans to be meeting 29% of its energy demands with natural gas, 14% from oil shale, 10% from renewable energy sources and 6% from nuclear energy. Additionally, the general energy consumption needs to be reduced in order to improve efficient energy use.

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