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Jordan vs. Israel

Economy

JordanIsrael
Economy - overview

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 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 about 2.5% per year - and hurt export-oriented sectors, construction/real estate, 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 approximately 660,000 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 Syrians as of early 2016.

Jordan is nearly completely dependent on imported energy-mostly natural gas-and energy consistently makes up 25-30% of Jordan's imports. To diversify its energy mix, Jordan has secured several contracts for liquefied and pipeline natural gas, developed several major renewables projects, and is currently exploring nuclear power generation and exploitation of abundant oil shale reserves. 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.

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.

 

Since March 2020, economic growth has slowed compared to recent historical averages, but Israel's slump has been less severe than in other Middle Eastern countries because of its swift vaccine roll-out and diversified economic base. Between 2016 and 2019, growth averaged 3.6% per year, led by exports. Israel's new government is hoping to pass the country's first budget in two years, which, combined with prudent fiscal policy and strong global trade ties would probably enable Israel to recover from economic challenges caused by the COVID-19 pandemic.

 

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. In 2020, Israel began exporting gas to Egypt and Jordan.

 

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 younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high. Private consumption is expected to drive growth through 2021, 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.

GDP (purchasing power parity)$101.738 billion (2019 est.)

$99.786 billion (2018 est.)

$97.893 billion (2017 est.)

note: data are in 2017 dollars
$394.7 billion (2019 est.)

$351.254 billion (2018 est.)

$339.528 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate2% (2019 est.)

1.94% (2018 est.)

2.12% (2017 est.)
-2.6% (2020 est.)

3.28% (2019 est.)

3.69% (2018 est.)
GDP - per capita (PPP)$10,071 (2019 est.)

$10,023 (2018 est.)

$10,010 (2017 est.)

note: data are in 2010 dollars
$41,953 (2020 est.)

$40,145 (2019 est.)

$39,543 (2018 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 4.5% (2017 est.)

industry: 28.8% (2017 est.)

services: 66.6% (2017 est.)
agriculture: 2.4% (2017 est.)

industry: 26.5% (2017 est.)

services: 69.5% (2017 est.)
Population below poverty line15.7% (2018 est.)22% (2014 est.)

note: Israel's poverty line is $7.30 per person per day
Household income or consumption by percentage sharelowest 10%: 3.4%

highest 10%: 28.7% (2010 est.)
lowest 10%: 1.7%

highest 10%: 31.3% (2010)
Inflation rate (consumer prices)0.3% (2019 est.)

4.4% (2018 est.)

3.3% (2017 est.)
1.8% (2020 est.)

0.8% (2019 est.)

0.8% (2018 est.)
Labor force731,000 (2020 est.)3.893 million (2020 est.)
Labor force - by occupationagriculture: 2%

industry: 20%

services: 78% (2013 est.)
agriculture: 1.1%

industry: 17.3%

services: 81.6% (2015 est.)
Unemployment rate19.1% (2019 est.)

18.61% (2018 est.)

note: official rate; unofficial rate is approximately 30%
4.4% (2020 est.)

3.81% (2019 est.)

4% (2018 est.)
Distribution of family income - Gini index33.7 (2010 est.)

36.4 (1997)
37 (2018 est.)

39 (2016 est.)

39.2 (2008)
Budgetrevenues: 9.462 billion (2017 est.)

expenditures: 11.51 billion (2017 est.)
revenues: 93.11 billion (2017 est.)

expenditures: 100.2 billion (2017 est.)
Industriestourism, information technology, clothing, fertilizer, potash, phosphate mining, pharmaceuticals, petroleum refining, cement, inorganic chemicals, light manufacturinghigh-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
Industrial production growth rate1.4% (2017 est.)3.5% (2017 est.)
Agriculture - productstomatoes, poultry, olives, milk, potatoes, cucumbers, vegetables, watermelons, green chillies/peppers, peaches/nectarinesmilk, potatoes, poultry, tomatoes, carrots, turnips, tangerines/mandarins, green chillies/peppers, eggs, vegetables
Exports$13.109 billion (2018 est.)

$12.718 billion (2017 est.)
$104.992 billion (2019 est.)

$101.389 billion (2018 est.)

$95.196 billion (2017 est.)
Exports - commoditiesfertilizers, calcium phosphates, packaged medicines, clothing and apparel, phosphoric acid (2019)diamonds, packaged medicines, medical instruments, integrated circuits, refined petroleum (2019)
Exports - partnersUnited States 21%, Saudi Arabia 13%, India 8%, Iraq 7%, United Arab Emirates 5%, China 5% (2019)United States 26%, China 9%, United Kingdom 7% (2020)
Imports$19.669 billion (2018 est.)

$19.353 billion (2017 est.)
$116.23 billion (2019 est.)

$111.652 billion (2018 est.)

$104.252 billion (2017 est.)
Imports - commoditiescars, refined petroleum, natural gas, crude petroleum, clothing and apparel (2019)diamonds, cars, crude petroleum, refined petroleum, broadcasting equipment (2019)
Imports - partnersChina 17%, Saudi Arabia 15%, United States 6%, United Arab Emirates 6%, Egypt 5%, India 5% (2019)United States 12%, China 11%, Germany 7.5%, Switzerland 7%, Turkey 6% (2020)
Debt - external$32.088 billion (2019 est.)

$29.916 billion (2018 est.)
$132.5 billion (31 December 2020 est.)

$99.886 billion (2019 est.)

$94.247 billion (2018 est.)
Exchange ratesJordanian dinars (JOD) per US dollar -

0.709 (2020 est.)

0.709 (2019 est.)

0.70925 (2018 est.)

0.71 (2014 est.)

0.71 (2013 est.)
new Israeli shekels (ILS) per US dollar -

3.44 (2020 est.)

3.4684 (2019 est.)

3.7332 (2018 est.)

3.8869 (2014 est.)

3.5779 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt95.9% of GDP (2017 est.)

95.1% 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 intragovernmental debt; intragovernmental 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
72.6% of GDP (2020 est.)

59.6% of GDP (2019 est.)

60.4% of GDP (2018 est.)
Reserves of foreign exchange and gold$15.56 billion (31 December 2017 est.)

$15.54 billion (31 December 2016 est.)
$173.292 billion (2020 est.)

$113 billion (31 December 2017 est.)

$95.45 billion (31 December 2016 est.)
Current Account Balance-$1.222 billion (2019 est.)

-$2.964 billion (2018 est.)
$20.642 billion (2020 est.)

$13.411 billion (2019 est.)

$7.888 billion (2018 est.)
GDP (official exchange rate)$44.568 billion (2019 est.)$394.93 billion (2019 est.)
Credit ratingsFitch rating: BB- (2019)

Moody's rating: B1 (2013)

Standard & Poors rating: B+ (2017)
Fitch rating: A+ (2016)

Moody's rating: A1 (2008)

Standard & Poors rating: AA- (2018)

Note: The year refers to the year in which the current credit rating was first obtained.
Ease of Doing Business Index scoresOverall score: 69 (2020)

Starting a Business score: 84.5 (2020)

Trading score: 79 (2020)

Enforcement score: 55.6 (2020)
Overall score: 76.7 (2020)

Starting a Business score: 94.1 (2020)

Trading score: 83.4 (2020)

Enforcement score: 58.9 (2020)
Taxes and other revenues23.6% (of GDP) (2017 est.)26.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-5.1% (of GDP) (2017 est.)-2% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 37.3%

male: 34.8%

female: 49.4% (2019 est.)
total: 6.7%

male: 6.1%

female: 7.2% (2019 est.)
GDP - composition, by end usehousehold consumption: 80.5% (2017 est.)

government consumption: 19.8% (2017 est.)

investment in fixed capital: 22.8% (2017 est.)

investment in inventories: 0.7% (2017 est.)

exports of goods and services: 34.2% (2017 est.)

imports of goods and services: -58% (2017 est.)
household consumption: 55.1% (2017 est.)

government consumption: 22.8% (2017 est.)

investment in fixed capital: 20.1% (2017 est.)

investment in inventories: 0.7% (2017 est.)

exports of goods and services: 28.9% (2017 est.)

imports of goods and services: -27.5% (2017 est.)
Gross national saving15.8% of GDP (2019 est.)

12% of GDP (2018 est.)

8.9% of GDP (2017 est.)
24.7% of GDP (2019 est.)

24.4% of GDP (2018 est.)

24.4% of GDP (2017 est.)

Source: CIA Factbook