Economy of Jordan
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, 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, and making substantial headway with privatization. In 2006, Jordan reduced its debt to GDP ratio significantly. The government also has liberalized the trade regime sufficiently to secure Jordan's membership in the WTO (2000), a free trade accord with the US (2001), and an association agreement with the EU (2001).
These measures have helped improve productivity and have put Jordan on the foreign investment map. Jordan imported most of its oil from Iraq, but the US-led war in Iraq in 2003 made Jordan more dependent on oil from other Gulf nations, and has forced the Jordanian Government to raise retail petroleum product prices and the sales tax base.
Jordan's export market, which is heavily dependent on exports to Iraq, was also affected by the war but recovered quickly while contributing to the Iraq recovery effort. The main challenges facing Jordan are reducing dependence on foreign grants, reducing the budget deficit, and attracting investment to promote job creation.
GDP
Real Growth Rate
6%
Per Capita
USD 4,900
From Agriculture
4%
From Industry
31%
From Services
66%
Labour Force
Available for Work
1
Working in Agriculture
5%
Working in Industry
13%
Working in Services
83%
Unemployment Rate
15%
Population Below Poverty Line
30%
Inflation Rate
6%
Investment as Percent of GDP
25%
Budget
Revenues
USD 4,880 (m)
Expenditures
USD 5,510 (m)
Public Debt
US$ 10180.00 (m)
Agricultural Products
Citrus, tomatoes, cucumbers, olives; sheep, poultry, stone fruits, strawberries and dairy.
Core Industries
Clothing, phosphate mining, fertilizers, pharmaceuticals, petroleum refining, cement, potash, inorganic chemicals, light manufacturing and tourism.
Exports
Value
USD 4,798 (m)
Commodities
Clothing, pharmaceuticals, potash, phosphates, fertilizers, vegetables and manufactures.
Partners
US 26.2%, Iraq 17.1%, India 8.1%, Saudi Arabia 5.9%, Syria 4.7% (2005).
Imports
Value
USD 10,420 (m)
Commodities
Crude oil, textile fabrics, machinery, transport equipment and manufactured goods.
Partners
Saudi Arabia 23.6%, China 9.2%, Germany 8%, US 5.6% (2005).
External Debt
USD 7,300 (m)
Fiscal Year
calendar year