The Economy of Jordan
The Economy of Jordan
Jordanian Economy
Economy - overview: Jordan is a small Arab country with insufficient supplies of water, oil, and other natural resources. Poverty, unemployment, and inflation are fundamental problems, but King ABDALLAH II, since assuming the throne in 1999, has undertaken some broad economic reforms in a long-term effort to improve living standards. Since Jordan's graduation from its most recent IMF program in 2002, Amman has continued to follow IMF guidelines, practicing careful monetary policy, making substantial headway with privatization, and opening the trade regime. Jordan's exports have significantly increased under the free trade accord with the US and Jordanian Qualifying Industrial Zones (QIZ), which allow Jordan to export goods with some Israeli content duty free to the US. In 2006 and 2008, Jordan used privatization proceeds to significantly reduce its debt-to-GDP ratio. These measures have helped improve productivity and have made Jordan more attractive for foreign investment. The government ended subsidies for petroleum and other consumer goods in 2008 in an effort to control the budget. The main challenges facing Jordan are reducing dependence on foreign grants, reducing the growing budget deficit, attracting investments, and creating jobs. Jordan is currently exploring nuclear power generation to forestall energy shortfalls. Jordan's conservative banking sector has been largely protected from the worldwide financial crisis, but many businesses, particularly in the tourism and real estate sector, are predicting a slow-down in 2009.
GDP:
GDP - real growth rate: 5.8% (2008 est.) 6% (2007 est.) 6.3% (2006 est.)
GDP - per capita:
GDP - composition by sector: agriculture: 3.6% industry: 10.1% services: 86.3% (2008 est.)
Population below poverty line:
Household income or consumption by percentage share: lowest 10%: 2.7% highest 10%: 30.6% (2003)
Distribution of family income - Gini index: 39.7 (2007)
Inflation rate (consumer prices):
Labor force: 1.615 million (2008 est.)
Labor force - by occupation: agriculture: 2.7% industry: 20% services: 77.4% (2001 est.)
Unemployment rate: 12.9% official rate; unofficial rate is approximately 30% (2008 est.)
Budget: revenues: $5.999 billion expenditures: $7.87 billion (2008 est.)
Industries: clothing, fertilizers, potash, phosphate mining, pharmaceuticals, petroleum refining, cement, inorganic chemicals, light manufacturing, tourism
Industrial production growth rate: 1.8% (2008 est.)
Electricity - production: 10.08 billion kWh (2007 est.)
Electricity - production by source:
Electricity - consumption: 9.852 billion kWh (2006 est.)
Electricity - exports: 13 million kWh (2006 est.)
Electricity - imports: 472 million kWh (2006 est.)
Oil - production: 0 bbl/day (2005 est.)
Oil - consumption: 110,700 bbl/day (2006 est.)
Oil - exports: 0 bbl/day (2005 est.)
Oil - imports: 112,300 bbl/day (2005 est.)
Oil - proved reserves: 1 million bbl (1 January 2008 est.)
Natural gas - production: 320 million cu m (2006 est.)
Natural gas - consumption: 2.25 billion cu m (2006 est.)
Natural gas - exports: 0 cu m (2007 est.)
Natural gas - imports: 2.4 billion cu m (2007 est.)
Natural gas - proved reserves: 6.031 billion cu m (1 January 2008 est.)
Agriculture - products: citrus, tomatoes, cucumbers, olives; sheep, poultry, stone fruits, strawberries, dairy
Exports: $6.521 billion f.o.b. (2008 est.)
Exports - commodities: clothing, fertilizers, potash, phosphates, vegetables, pharmaceuticals
Exports - partners: US 22.4%, Iraq 12.9%, India 8.3%, UAE 7.8%, Saudi Arabia 7.5%, Syria 4.9% (2007)
Imports: $15.65 billion f.o.b. (2008 est.)
Imports - commodities: crude oil, machinery, transport equipment, iron, cereals
Imports - partners: Saudi Arabia 21%, China 9.7%, Germany 7.5%, US 4.7%, Egypt 4.4% (2007)
Debt - external: $6.597 billion (31 December 2008 est.)
Economic aid - recipient:
Currency:
Currency code:
Exchange rates: Jordanian dinars (JOD) per US dollar - 0.709 (2008 est.), 0.709 (2007), 0.709 (2006), 0.709 (2005), 0.709 (2004)
Fiscal year: