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Israel vs. Jordan

Economy

IsraelJordan
Economy - overview"Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.

Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.

Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.

Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of ""tycoons"" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.

In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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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 poverty, unemployment and underemployment, budget and current account deficits, and government debt.

King ABDALLAH, during the first decade of the 2000s, implemented significant economic reforms, such as expanding foreign trade and privatizing state-owned companies that attracted foreign investment and contributed to average annual economic growth of 8% for 2004 through 2008. The global economic slowdown and regional turmoil contributed to slower growth from 2010 to 2017 - with growth averaging 2.6% per year - and hurt export-oriented sectors, construction, and tourism. Since the onset of the civil war in Syria and resulting refugee crisis, one of Jordan’s most pressing socioeconomic challenges has been managing the influx of 650,000 UN-registered refugees, more than 80% of whom live in Jordan’s urban areas. Jordan’s own official census estimated the refugee number at 1.3 million as of early 2016.

Jordan is nearly completely dependent on imported energy—mostly natural gas—and energy consistently makes up 25-30 percent of Jordan’s imports. To diversify its energy mix, Jordan has secured several contracts for liquefied natural gas and is currently exploring nuclear power generation, exploitation of abundant oil shale reserves and renewable technologies, as well as the import of Israeli offshore gas. In August 2016, Jordan and the IMF agreed to a $723 million Extended Fund Facility that aims to build on the three-year, $2.1 billion IMF program that ended in August 2015 with the goal of helping Jordan correct budgetary and balance of payments imbalances.
GDP (purchasing power parity)$315.6 billion (2017 est.)
$306.1 billion (2016 est.)
$294.5 billion (2015 est.)
note: data are in 2017 dollars
$89.05 billion (2017 est.)
$87.04 billion (2016 est.)
$85.33 billion (2015 est.)
note: data are in 2017 dollars
GDP - real growth rate3.1% (2017 est.)
4% (2016 est.)
2.6% (2015 est.)
2.3% (2017 est.)
2% (2016 est.)
2.4% (2015 est.)
GDP - per capita (PPP)$36,200 (2017 est.)
$35,800 (2016 est.)
$35,200 (2015 est.)
note: data are in 2017 dollars
$12,500 (2017 est.)
$12,500 (2016 est.)
$12,500 (2015 est.)
note: data are in 2017 dollars
GDP - composition by sectoragriculture: 2.3%
industry: 26.6%
services: 69.5% (2017 est.)
agriculture: 4.3%
industry: 28.9%
services: 66.8% (2017 est.)
Population below poverty line22%
note: Israel's poverty line is $7.30 per person per day (2014 est.)
14.2% (2002 est.)
Household income or consumption by percentage sharelowest 10%: 1.7%
highest 10%: 31.3% (2010)
lowest 10%: 3.4%
highest 10%: 28.7% (2010 est.)
Inflation rate (consumer prices)0.2% (2017 est.)
-0.5% (2016 est.)
3.3% (2017 est.)
-0.8% (2016 est.)
Labor force4.021 million (2017 est.)
2.295 million (2017 est.)
Labor force - by occupationagriculture: 1.1%
industry: 17.3%
services: 81.6% (2015)
agriculture: 2%
industry: 20%
services: 78% (2013 est.)
Unemployment rate4.3% (2017 est.)
4.8% (2016 est.)
16.5% (2017 est.)
15.3% (2016 est.)
note: official rate; unofficial rate is approximately 30%
Distribution of family income - Gini index42.8 (2013)
39.2 (2008)
39.7 (2007)
36.4 (1997)
Budgetrevenues: $92.82 billion
expenditures: $102.1 billion (2017 est.)
revenues: $9.157 billion
expenditures: $11.81 billion (2017 est.)
Industrieshigh-technology products (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, pharmaceuticals, construction, metal products, chemical products, plastics, cut diamonds, textiles, footwear
tourism, information technology, clothing, fertilizer, potash, phosphate mining, pharmaceuticals, petroleum refining, cement, inorganic chemicals, light manufacturing
Industrial production growth rate4% (2017 est.)
2.2% (2017 est.)
Agriculture - productscitrus, vegetables, cotton; beef, poultry, dairy products
citrus, tomatoes, cucumbers, olives, strawberries, stone fruits; sheep, poultry, dairy
Exports$60.6 billion (2017 est.)
$56.17 billion (2016 est.)
$7.734 billion (2017 est.)
$7.509 billion (2016 est.)
Exports - commoditiesmachinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel
textiles, fertilizers, potash, phosphates, vegetables, pharmaceuticals
Exports - partnersUS 29.3%, Hong Kong 7.4%, UK 6.5%, China 5.5%, Belgium 4.2% (2016)
US 25.2%, Saudi Arabia 14.2%, India 8.4%, Iraq 6.8%, UAE 5.6%, Kuwait 5.1% (2016)
Imports$66.76 billion (2017 est.)
$63.54 billion (2016 est.)
$17.61 billion (2017 est.)
$17.03 billion (2016 est.)
Imports - commoditiesraw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
crude oil, refined petroleum products, machinery, transport equipment, iron, cereals
Imports - partnersUS 12.2%, China 8.9%, Switzerland 6.4%, Germany 6.1%, Belgium 5.9%, UK 5.5%, Netherlands 4.1%, Italy 4% (2016)
China 14%, Saudi Arabia 11.8%, US 7.4%, Germany 4.8%, Italy 4.7%, UAE 4.4% (2016)
Debt - external$93.02 billion (31 December 2017 est.)
$87.96 billion (31 December 2016 est.)
$27.72 billion (31 December 2017 est.)
$26.38 billion (31 December 2016 est.)
Exchange ratesnew Israeli shekels (ILS) per US dollar -
3.606 (2017 est.)
3.8406 (2016 est.)
3.8406 (2015 est.)
3.8869 (2014 est.)
3.5779 (2013 est.)
Jordanian dinars (JOD) per US dollar -
0.71 (2017 est.)
0.71 (2016 est.)
0.71 (2015 est.)
0.71 (2014 est.)
0.71 (2013 est.)
Fiscal yearcalendar year
calendar year
Public debt59.5% of GDP (2017 est.)
60.7% of GDP (2016 est.)
86% of GDP (2017 est.)
87.7% of GDP (2016 est.)
note: data cover central government debt, and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data exclude debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
Reserves of foreign exchange and gold$113 billion (31 December 2017 est.)
$95.45 billion (31 December 2016 est.)
$15.98 billion (31 December 2017 est.)
$15.54 billion (31 December 2016 est.)
Current Account Balance$14.28 billion (2017 est.)
$11.57 billion (2016 est.)
-$3.412 billion (2017 est.)
-$3.613 billion (2016 est.)
GDP (official exchange rate)$348 billion (2016 est.)
$40.49 billion (2016 est.)
Stock of direct foreign investment - at home$119.4 billion (31 December 2017 est.)
$107.3 billion (31 December 2016 est.)
$33.96 billion (31 December 2017 est.)
$32.15 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$106.9 billion (31 December 2017 est.)
$98.11 billion (31 December 2016 est.)
$646.5 million (31 December 2017 est.)
$612.5 million (31 December 2016 est.)
Market value of publicly traded shares$243.9 billion (31 December 2015 est.)
$200.5 billion (31 December 2014 est.)
$203.3 billion (31 December 2013 est.)
$24.25 billion (31 December 2016 est.)
$25.45 billion (31 December 2015 est.)
$25.55 billion (31 December 2014 est.)
Central bank discount rate0.1% (15 December 2015)
0.25% (31 December 2014)
3.75% (31 December 2015)
0.3% (31 December 2010)
Commercial bank prime lending rate3.3% (31 December 2017 est.)
3.42% (31 December 2016 est.)
8.5% (31 December 2017 est.)
7.83% (31 December 2016 est.)
Stock of domestic credit$280.8 billion (31 December 2017 est.)
$257.5 billion (31 December 2016 est.)
$44.59 billion (31 December 2017 est.)
$41.87 billion (31 December 2016 est.)
Stock of narrow money$98.28 billion (31 December 2017 est.)
$79.58 billion (31 December 2016 est.)
$14.98 billion (31 December 2017 est.)
$14.63 billion (31 December 2016 est.)
Stock of broad money$223.1 billion (31 December 2017 est.)
$189 billion (31 December 2016 est.)
$47.29 billion (31 December 2017 est.)
$46.3 billion (31 December 2016 est.)
Taxes and other revenues26.7% of GDP (2017 est.)
22.6% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-2.7% of GDP (2017 est.)
-6.5% of GDP (2017 est.)
Unemployment, youth ages 15-24total: 8.6%
male: 8.2%
female: 9.1% (2016 est.)
total: 29.3%
male: 25.2%
female: 48.8% (2012 est.)
GDP - composition, by end usehousehold consumption: 55.4%
government consumption: 22%
investment in fixed capital: 20.5%
investment in inventories: 0.2%
exports of goods and services: 29.8%
imports of goods and services: -27.9% (2017 est.)
household consumption: 79.1%
government consumption: 19.3%
investment in fixed capital: 22.4%
investment in inventories: 1.9%
exports of goods and services: 32.7%
imports of goods and services: -55.4% (2017 est.)
Gross national saving24.2% of GDP (2017 est.)
24.1% of GDP (2016 est.)
24.6% of GDP (2015 est.)
11.8% of GDP (2017 est.)
9.5% of GDP (2016 est.)
10.2% of GDP (2015 est.)

Source: CIA Factbook