The economy of Jordan is classified as an emerging market economy. As of 2019, Jordan boasts a GDP of US$44.4 billion, ranking it 89th worldwide. The biggest obstacles to greater economic freedom are poor fiscal health and relatively low scores on such rule-of-law indicators as property rights and (especially) government integrity. An austerity programme was adopted by the government which aims to reduce Jordan's debt-to-GDP ratio to 77% by 2021. The programme succeeded in preventing the debt from rising above 95% in 2018.
The following tables and chart will tell the change details in last 5-10 years:
Jordan Distribution of workforce from the last 5 years:
Jordan Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Jordan GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Jordan's economy. It employs almost 3.08% of the total workforce and contributed almost 5.63% in GDP.
Jordan relies on substantial amounts of agricultural imports to meet the demand for both food and animal feed within its domestic market. Some of the main agricultural products imported by Jordan are commodities such as wheat, barley, corn, and rice.
Major products in this Sector:
Fruits: In 2019 the value of exports of commodity “Edible fruit and nuts; peel of citrus fruit or melons” from Jordan totalled $ 136 million. This contributed almost 1.64% of total export from Jordan. The top export destinations are Iraq, Saudi Arabia, Kuwait , United Arab Emirates and Bahrain. Fresh peaches and nectarines have the largest export potential among the fruits grown in Jordan.
Vegetables: In 2019 the value of exports of vegetables from Jordan totalled $ 62 million. This contributed almost 0.753% of total export from Jordan. The top export destinations are Iraq, Saudi Arabia, Yemen, United Arab Emirates and Qatar. Cucumbers, Tomatoes and Eggplants have the largest export potential among the fruits grown in Jordan.
Agriculture Subsidy in Jordan:
Jordan government introduced Agricultural Development Strategy to support the farmers. Here we include some key points of this strategy.
- Provide a suitable environment for the private sector to effectively participate in agricultural development.
- Increase investment in the agricultural sector
- Provide new job opportunities and work in the agricultural sector.
- Increase incomes of farmers and workers in the supporting agricultural activities.
- Improve the competitiveness of produce in quality and price in local and export markets.
- Increase agricultural production and increase its contribution to the GDP.
- Increase the degree of self-reliance in food, and improve the agricultural trade balance.
Industry is an important part in the Jordan's economy. It accounts for 27.58% of GDP and employed almost 24.52% of the workforce.
Major Industries in this Sector:
Textile: Jordan has earned a reputable name worldwide in textile outsourcing. Made in Jordan tags are making a wave in the United States of America. In 2019, Jordan exported garments worth US$ 1.6 billion to that country. Overall textile exports account for 27 per approximately cent of the country's Gross Domestic Product. Jordan and the United States of America signed the Free Trade Agreement (FTA) in 2001, following which the country's textile exports flourished.
Chemical Industry: In Jordan, the Chemical industry was valued at USD5.5 billion in 2019, representing 23.5% of the country's total manufacturing output in that year. This sector employed almost 53,500 persons, approximately, increasing its share of the country's total employment to 2.5%. The Chemical industry is also a key contributor in generating revenue from exports which was valued at USD 1 billion in 2019 (equivalent to 18.8% of Jordan's total exports in the same year). This generates important foreign exchange inflows that help the country narrow its current account balance (which reached 8.8% of GDP in 2018)
Service sector is an important part in the Jordan's economy. It contributes almost 61.84% in the GDP and employed almost 72% of the total Jordan's workforce.
Major Industries in this Sector:
Finance: Jordan's banking sector is the strongest segment of its financial services industry, with a history of dating back to 1948, when Arab Bank moved its headquarters from Jerusalem to Amman. Banking accounted for 18.82% of GDP as of 2019, making it one of the largest economic sectors in the kingdom. The top banks in Jordan are Bank of Jordan, Arab Bank, Cairo Amman Bank, Capital Bank of Jordan, Jordan Kuwait Bank.
Tourism: Jordan has seen a 9-per cent rise in the total number of visitors during the past year, with total numbers reaching 5.36 million in 2019 compared with 4.9 million in 2018. In 2019, tourism income has increased by 10.2%, totaling JD4.1 billion ($5.8 billion). The increase was due to an 8.9% rise in the total number of visitors, which reached 5,360 tourists, compared to 2018. The state of the tourism sector is widely regarded as below potential, especially given the country's rich history, ancient ruins, Mediterranean climate, and diverse geography.
Top Companies in Jordan
|Serial Number||Company Name||Sector|
|1||Arab Bank Group||Banking|
|2||Royal Jordanian Airlines||Transport|
|3||AI Tajamouat for Touristic Projects||Real Estate|
|6||JTG Orange Jordan||Telecommunication|
|7||Nuqul Group||Financial Services|