Jordan Economy Profile 2008

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 duty free to the US. In 2006, Jordan reduced its debt-to-GDP ratio significantly. These measures have helped improve productivity and have made Jordan more attractive for foreign investment. Before the US-led war in Iraq, Jordan imported most of its oil from Iraq. Since 2003, however, Jordan has been more dependent on oil from other Gulf nations. 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 budget deficit, attracting investments, and creating jobs.

GDP (purchasing power parity)

$28.18 billion (2007 est.)

GDP (official exchange rate)

$15.7 billion (2007 est.)

GDP - real growth rate

5.7% (2007 est.)

GDP - per capita (PPP)

$4,700 (2007 est.)

GDP - composition by sector

agriculture: 3.7%
industry: 10.5%
services: 85.8% (2007 est.)

Population below poverty line

14.2% (2002)

Household income or consumption by percentage share

lowest 10%: 2.7%
highest 10%: 30.6% (2003)

Inflation rate (consumer prices)

5.4% (2007 est.)

Investment (gross fixed)

27.8% of GDP (2007 est.)

Labor force

1.563 million (2007 est.)

Labor force - by occupation

agriculture: 5%
industry: 12.5%
services: 82.5% (2001 est.)

Unemployment rate

13.5% official rate; unofficial rate is approximately 30% (2007 est.)

Distribution of family income - Gini index

38.8 (2003)

Budget

revenues: $4.999 billion
expenditures: $6.449 billion (2007 est.)

Public debt

67.2% of GDP (2007 est.)

Industries

clothing, phosphate mining, fertilizers, pharmaceuticals, petroleum refining, cement, potash, inorganic chemicals, light manufacturing, tourism

Industrial production growth rate

7.7% (2007 est.)

Electricity - production

9.074 billion kWh (2005)

Electricity - consumption

8.49 billion kWh (2005)

Electricity - exports

4 million kWh (2005)

Electricity - imports

741 million kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

109,000 bbl/day (2005 est.)

Oil - imports

106,400 bbl/day (2004 est.)

Oil - exports

0 bbl/day (2004 est.)

Oil - proved reserves

1 million bbl (1 January 2006 est.)

Natural gas - production

268.5 million cu m (2005 est.)

Natural gas - consumption

1.496 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

1.228 billion cu m (2005)

Natural gas - proved reserves

5.975 billion cu m (1 January 2006 est.)

Current Account Balance

-$1.69 billion (2007 est.)

Agriculture - products

citrus, tomatoes, cucumbers, olives; sheep, poultry, stone fruits, strawberries, dairy

Exports

$6.037 billion f.o.b. (2007 est.)

Exports - commodities

clothing, pharmaceuticals, potash, phosphates, fertilizers, vegetables, manufactures

Exports - partners

US 25.2%, Iraq 16.9%, India 8%, Saudi Arabia 5.8%, Syria 4.7% (2006)

Imports

$11.08 billion f.o.b. (2007 est.)

Imports - commodities

crude oil, textile fabrics, machinery, transport equipment, manufactured goods

Imports - partners

Saudi Arabia 23.2%, Germany 8.3%, China 8%, US 5.3% (2006)

Reserves of foreign exchange and gold

$8.595 billion (31 December 2007 est.)

Debt - external

$7.483 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$8.154 billion (2006 est.)

Market value of publicly traded shares

$29.73 billion (2006)

Economic aid - recipient

ODA, $752 million (2005 est.)

Currency (code)

Jordanian dinar (JOD)

Exchange rates

Jordanian dinars per US dollar - 0.709 (2007), 0.709 (2006), 0.709 (2005), 0.709 (2004), 0.709 (2003)

Fiscal year

calendar year