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flag Jordan Jordan: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Jordan is classified by The World Bank as a "lower middle income country." It is a small country with limited natural resources (the country's three main resources are phosphates, potassium and limestone). Recent economic reforms aimed at liberalizing trade and attracting investments have allowed Jordan to reach good economi results. In 2010, the GDP growth rate was 3.4% adn in 2011 should remain at around 3.5%. Poverty, unemployment (about 13%) and a large foreign debt are the main problems of the country. The Jordanian economy remains vulnerable to external shocks and regional unrest. It is also very dependent on foreign aid, which reached more than a billion USD in 2008. The coutnry is troubled by a relatively large trade deficit, mainly due to the increase in food and energy product subsidies and linked to the decrease in international aid.

Jordan was very little affected by the financial crisis of 2008 and the country has experienced a moderate economic slowdown in the last two years, mostly due to the decrease in money transfers from the immigrant workforce in the countries of the Gulf, which represent on average 3 billion USD annually (15% of the GDP).

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 23.8426.4528.4030.8633.63
GDP (Constant Prices, Annual % Change) 5.52.32.52.93.5
GDP per Capita (USD) 3,9874,3264,542e4,8255,139
General Government Gross Debt (in % of GDP) 64.566.868.567.866.9
Inflation Rate (%) -0.75.0e5.4e5.65.3
Unemployment Rate (% of the Labor Force) 12.912.512.512.512.5
Current Account (billions USD) -0.78-1.30e-1.91e-2.60-2.46
Current Account (in % of GDP) -3.3e-4.9-6.7-7.3-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture represents about 4% of the GDP and employs less than 3% of the workforce. The lack of water creates an obstacle to agricultural development. The principal crops are wheat, barley, lentils, tomatoes, eggplants, citrus fruits, olives and grapes. Phosphates and potassium are the only natural resources of the country. It should be noted that 6 uranium deposits, representing 3% of the planet’s reserves, have been identified but to this day remain non-exploited. The manufacturing sector is rather limited and dominated by textiles, a sector presently in a state of crisis due to international competition.

Industry (mostly pharmaceutical) and mining together contribute to nearly 30% to GDP and concentrate one fifth of the workforce.

The services sector, which employs more than 77% of the workforce, contributes two thirds to GDP. Jordan is particularly active in the fields of communication technologies and financial services. The sectors of distribution and tourism infrastructures also contribute substantially to GDP, although they experienced a slowdown in the recent years. The construction and transport sectors are in full boom. The government encourages the new information technology and tourism sectors.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 3.0 19.5 77.4
Value Added (in % of GDP) 2.9 30.6 66.5
Value Added (Annual % Change) 6.6 1.7 6.0

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Jordanian Dinar (JOD) - Average Annual Exchange Rate For 1 USD 0.710.710.710.710.71

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Jordan on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
68.9/100
Position:
Moderately free
World Rank:
37/179
Regional Rank:
4/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Jordan is very open to international trade. The share of foreign trade in the country's GDP is around 135%. Its trade balance is currently a deficit, due to its dependence on raw materials. Jordan is a member of the WTO and signed a free-trade agreement (FTA) with the USA in December 2001, removing customs duties on the majority of goods and services until 2010. Jordan has also signed an Agreement of Association with the EU. In june 2010, Jordan signed an accord with Turkey, Syria and Lebanon, in order to create a free-trade zone, with free circulation of goods and workforce between these four near-eastern countries.
The country’s top three export partners are India (16%), Iraq (16%) and the United States (13%). The main export commodities are clothes & clothing accessories, fertilizers, pharmaceutical products and edible vegetables. Jordan is also one of the top five exporters of phosphates (together with the USA, China, Russia and Morocco).
The top three import partners are Saudi Arabia (21%), China (10%) and the United States (6%). Jordan mainly imports mineral fuels & oils, vehicles, machinery, and electric & electronic equipment.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 11,54813,68116,99514,23615,262
Exports of Goods (million USD) 5,2045,7257,9386,3757,023
Imports of Services (million USD) 2,8543,3563,9263,6574,158
Exports of Services (million USD) 2,8503,4364,3534,1924,880
Imports of Goods and Services (Annual % Change) 3.56.43.1-7.87.1
Exports of Goods and Services (Annual % Change) 12.52.3-12.1-2.77.6
Imports of Goods and Services (in % of GDP) 84.688.484.765.065.9
Exports of Goods and Services (in % of GDP) 51.852.254.743.544.5
Trade Balance (million USD) -5,056-6,452-7,165-6,266-6,650
Trade Balance (Including Service) (million USD) -5,119-6,421-6,813-5,531-5,760
Foreign Trade (in % of GDP) 136.4140.6139.4108.5110.4

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Iraq 16.0%
United States 13.2%
India 11.1%
Saudi Arabia 9.4%
United Arab Emirates 4.2%
See More Countries 46.0%
Main Suppliers
(% of Imports)
2010
Saudi Arabia 19.8%
China 10.8%
Germany 6.1%
United States 5.6%
Egypt 4.5%
See More Countries 53.1%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Mineral or chemical potassic fertilizers (excl....Mineral or chemical potassic fertilizers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 9.8%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 7.7%
Special garments for professional, sporting or...Special garments for professional, sporting or other purposes, n.e.s., knitted or crocheted 7.7%
Natural calcium phosphates and natural aluminium...Natural calcium phosphates and natural aluminium calcium phosphates, natural and phosphatic chalk 5.3%
Mineral or chemical nitrogenous fertilizers (excl....Mineral or chemical nitrogenous fertilizers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 4.5%
See More Products 64.9%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 12.2%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.1%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.1%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.1%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.4%
See More Products 71.0%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Economy, Industry and trade
Ministry of Finance
Statistical Office
Department of Statistics
Central Bank
Central Bank of Jordan
Stock Exchange
Amman Stock Exchange
Search Engines
Baladna
Jordanlinks.com
Jordan Yahoo directory
Economic Portals

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Political Outline

Executive Power
The head of state is the King. The monarchy is hereditary.The King enjoys the executive powers. The King signs and executes all laws. He appoints and may dismiss all judges by decree, approves amendments to the constitution, declares war. The King appoints the Prime Minister as head of the government, having no fixed term of office.The cabinet, led by the Prime Minister, is appointed by the King.
Legislative Power
The legislature is bicameral in Jordan. Its parliament consists of: the House of Notables (the upper house) having 55 members who are appointed by the King to serve four-year terms; and the House of Representatives (the lower house) having 110 members elected by popular vote on the basis of proportional representation to serve four-year terms. The King’s power of veto may be overridden by a two-thirds vote of both houses of the National Assembly .The people of Jordan have limited political rights. The first parliamentary elections in 22 years were held in November 1989.
Main Political Parties
Political parties were not legalized in the country until 1992. There is no clear picture of the political parties in Jordan. There is practically only one party, called the Islamic Action Front, which plays the real role of an opposition party.
Current Political Leaders
King: ABDALLAH II (since February 1999) – hereditary
Prime Minister: Awn Shawkat KHASAWNAH - Independent (since 24 October 2011)
Next Election Dates
House of Representatives: Year 2011
 

Indicator of Freedom of the Press

World Rank:
120/178
Evolution:
8 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012