A Stable Macro Economic Environment
Jordan’s macro-economic fundamentals are sound and many indicators point to continuing growth into 2008. The five year average annual GDP growth is 6%. In 2006 GDP growth was 6.4% and 6% in 2007. The economy is still growing strongly. On the purchasing power parity basis, Jordan’s GDP growth performance has shown the ability to deliver tangible growth to its inhabitants.
Exports are continuously increasing due to strengthened industries and increased value of Jordanian products abroad. Coupled with increased foreign investments which capitalize on trade agreements (with Arab countries, US, EU, and Singapore). Exports grew by 186% from 1996 to 2006. The government budget is in deficit, but is beginning to move towards an eventual return to surplus in a few years. The ratio of diminished by over 50% pushing down external debt as a percentage of the GDP down from 189% in 1990 to 46.7% in 2008. The Jordanian Dinar is stable and pegged to the US Dollar. During the economic expansion, Jordan has increased its foreign exchange reserves substantially to 6.8 billion USD from 2.8 Billion USD.
Fixed investment in the country is still growth for the third consecutive year. The growth rate is estimated to be approximately 7%.
The Jordanian government has focused on reforms and investment policy aimed at:
- Liberalization of trade, investment procedures, and elimination of trade barriers
- Encouragement of foreign investment
- Encouragement of private sector investment
- Privatization of previously-owned governmental projects
- Implementation of stronger trademark and copyright laws
- Reduction of import tariffs
Rigorous reform has had remarkable results:
GDP Growth
Balance of Trade
Percentage of Domestic Debt to GDP
Currency
Inflation
Foreign Direct Investment and Domestic Direct Investment
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