Main information about Jordan
| Country name | the Hashemite Kingdom of Jordan |
|---|---|
| The capital | Amman |
| Continent: | Asia |
| Area | 89,342 km 2 |
| Population (2022) | 11.3 million |
| The main language (official) | Arabic |
| Currency | Jordanian Dinar |
| Economic indicators (2022) | Jordan USD |
|---|---|
| GDP (billion)
Growth in GDP (%) |
47.5
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 |
| Government debt as % of GDP (%) | 114.2 |
| Budget deficit as % of GDP (%) | -4.6 |
| External public debt (billion) | 16.9 |
Source: World Bank, Central Bank of Jordan.
Jordan is characterized by an open economy that has become one of the most competitive economies in the Middle East thanks to the application of liberal economic policies despite its small size and limited resources.
Jordan has a modern and developed banking system that attracts important foreign investments, and long-term sovereign credit ratings are positive and stable, in addition to financial sector policies aimed at enhancing competition and efficiency. Banking supervision and regulation processes are generally in line with international standards. Over the past year, the government has worked to strengthen the country's financial position and macroeconomic environment, which has come under pressure due to the large influx of Syrian refugees.
Since the sixties of the last century, the Jordanian economy began to be characterized as a service sector in the first place, coinciding with the development of the government sector and the acceleration of its economic role.
The Jordanian economy is moving towards a knowledge economy and a digital economy to keep pace with the technological boom witnessed by economic transactions and moved the global economy towards the Fourth Industrial Revolution.
The Jordanian economy, in general, has witnessed some of its most prominent despite the challenges facing it, as we did not reach the local beauty rate of 2.5% in 2022 compared to 2021, when it reached 2.2.
| 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 three best improved business climates in the Doing Business 2020 report issued by the World Bank, as it improved 29 ranks from 104 to 75. Jordan advanced 33 points in the Simplified Tax Services Index for the application of the electronic tax payment system, and Jordan ranked 40 in the report Global Competitiveness 2019 issued by the World Economic Forum, ahead of six points in the index of domestic competition.
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 ratified a new public-private partnership law and the Jordanian government provided support for the government’s commitment to expand the benefit of public-private partnerships and encourage the private sector to play a greater role in overall economic activity. Jordan is also largely open to foreign investment. The government is committed to supporting foreign investment, and foreign and local investors are treated equally under the law. In 2022, the Jordanian government presented a new initiative to encourage investment, including providing single window facilities to investors through the Jordan Investment Authority. The problems associated with bureaucracy and corruption pose “Investment protection is an obstacle to foreign direct investment.
Foreign investment flows to Jordan improved during the 2016-2022 period, reaching an average of 2.6% of the GDP, compared to the 2010-2015 period, with an average of 5.3% of the GDP
International trade between Jordan and Egypt(2020-2022)
| year | Export Million JD | Import Million JD | Trade balance million JD | Total trade Million JD |
|---|---|---|---|---|
| 2020 | 141.7 | 595.5 | 737.2 | - 453.8 |
| 2021 | 206.7 | 712.5 | 919.2 | - 505.7 |
| 2022 | 201.7 | 556 | 757.7 | - 354.4 |
Source: international trade center (ITC)
| The most critical Jordanian export to Egypt (2022) | Export value Million USD |
|---|---|
| Fertilizers | 100.5 |
| Plastics | 14.8 |
| Seeds | 9.7 |
| Aluminium and articles thereof | 9.5 |
Source: international trade center (ITC)
| The most critical Jordanian import from Egypt (2022) | Import value Million USD |
|---|---|
| Preparations of vegetables, fruit,nuts | 26.7 |
| Edible fruit and nuts; peel of citrus fruit or melons | 26.6 |
| Miscellaneous edible preparations | 26.5 |
| Electrical machinery and equipment | 23.9 |
Source: international trade center (ITC)
Jordanian -Egyptian Economic cooperation is an exemplary example. Jordan represents Egypt’s gateway to the Iraq and the Arab Gulf markets, while Egypt represents a gateway to Jordanian exports to European and African market. And it is worth noting that the bilateral relations between the two countries have improved significantly over the past years.
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