Main information about Jordan
| Country name | the Hashemite Kingdom of Jordan |
|---|---|
| The capital | Amman |
| Continent: | Asia |
| Area | 89,342 km2 |
| Population (2022) | 11.3 million |
| The main language (official) | Arabic |
| Currency | Jordanian Dinar |
| Economic indicators (2022) | Jordan $ |
|---|---|
| GDP (billion) | 47.5 |
| Growth in GDP (%) | 2.5 |
| GDP per capita | 4,205 |
| Unemployment rate (%) | 17.9 |
| Inflation rate (%) | 4.2 |
| Labor force (million) | 3 |
| Export ( billion) | 8.8 |
| Import (billion) | 19.4 |
| Trade balance (billion) | -10.6 |
| Public debt as % of GDP (%) | 114.2 |
| Budget deficit as % of GDP (%) | -4.6 |
| External debt (biilion) | 16.9 |
Source: world Bank
Jordan’s economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources, underlying the government's heavy reliance on foreign assistance. Other economic challenges for the government include chronic high rates of unemployment, budget and current account deficits, and government debt. Majesty King Abdullah II bin Al-Hussein has laid out a plan for the economic rejuvenation vision (2023-2025), encompassing comprehensive reforms for the Jordanian economy. This plan aims to attract investments, support economic growth, and provide employment opportunities for Jordanian youth over the next decade. The vision includes key principles for charting a clear roadmap for Jordan's future, with a central role for the private sector in economic activity, supported by two strategic pillars: accelerated economic growth, improving the quality of life for all citizens. Sustainability is a fundamental cornerstone of this vision, aiming to achieve national priorities, with the primary goal being the creation of one million new job opportunities for Jordanians in the labor market. The Gross Domestic Product (GDP) growth for the first quarter of 2023 reached 2.8%, compared to a GDP growth of 2.5% at the end of 2022
In May 2023, the International Monetary Fund (IMF) and the Jordanian government reached an agreement on the sixth review of the economic reform program supported by the IMF through the Extended Fund Facility. This agreement increases the total disbursements from the IMF since the start of the program in 2020 to 1.3 billion Special Drawing Rights (approximately 1.75 billion USD). The goal is to assist Jordan in reducing poverty rates, managing public debt, and ensuring economic growth sustainability.
| Year | Foreign Direct Investment million USD |
|---|---|
| 2020 | 760 |
| 2021 | 622 |
| 2022 | 1,137 |
Source: United Nations Conference on Trade and Development (UNCTAD)
Jordan was selected as one of the top three improved business climates in the World Bank's Doing Business 2020 report, demonstrating significant progress by jumping 29 places in the rankings, from 104 to 75. Jordan also made significant advancements, gaining 33 points, in the Ease of Paying Taxes index by implementing an electronic tax payment system. Furthermore, in the 2019 Global Competitiveness Report released by the World Economic Forum, Jordan secured the 40th position, showing a six-point improvement in the Local Competition index.
Jordan also ranked 75th out of 190 countries in the latest Doing Business report issued by the World Bank for the year 2020, an increase of 29 places over the previous year. This big jump, which contrasts with years of decline, was primarily the result of a significant improvement in private companies' access to credit.
The Jordanian Investment Law grants equal treatment to local and foreign investors and grants incentives to local and foreign investment in industry, agriculture, tourism, hospitals, transportation, and energy and water distribution. In 2017, Jordan issued amendments to the Companies Law and a law to regulate and standardize control and inspection of economic activities.
The government also implemented additional reforms in 2018, including the insolvency law, the movable assets and secured lending law and its regulation, the investment capital regulation, and the new income tax law.
In 2020, Jordan adopted a new public-private partnership law to support the government's commitment to expand the use of the public-private partnership and encourage the private sector to play a greater role in public economic activity. Jordan is also largely open to foreign investment, and the government is committed to supporting foreign investment as foreign and domestic investors are treated equally under the law.
In 2022, the Jordanian government introduced a new initiative to encourage investment, including offering single window facilities to investors through the Jordan Investment Commission. Problems related to bureaucracy, corruption and investment protection are obstacles to foreign direct investment.
Foreign investment flows to Jordan improved during the period 2016-2022, reaching an average of 2.6% of the GDP, compared to the period 2010-2015, an average of 5.3% of the GDP.
| year | Total Trade million USD |
Trade Balance million USD |
Export million USD |
Import million USD |
|---|---|---|---|---|
| 2020 | 156.8 | 50.4 | 216.2 | 15.4 |
| 2021 | 203.1 | 66.5 | 269.6 | 136.6 |
| 2022 | 210.5 | 53.1 | 263.6 | 157.4 |
Source: Department of Statistics
| The most critical Jordanian exports to Palestine 2022 |
Export Value million USD |
|---|---|
| Cement | 57.8 |
| Aluminium and articles thereof | 31.6 |
| Iron and steel | 23.9 |
| Mineral fuels and mineral oils | 16.2 |
Source: Department of Statistics
| The most critical Jordanian imports from Palestine in 2022 |
Import Value million USD |
|---|---|
| Preparations of meats | 3.2 |
| Preparations of cereals, flour | 1.5 |
| Edible fruit and nuts | 0.8 |
| Furniture | 0.7 |
Source: Department of Statistics
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