Jordan Economy 2008

Economy - overview:
Jordan is a small Arab country with insufficient supplies of water, oil, and other natural resources. Poverty, unemployment, and inflation are fundamental problems, but King ABDALLAH II, since assuming the throne in 1999, has undertaken some broad economic reforms in a long-term effort to improve living standards. Since Jordan's graduation from its most recent IMF program in 2002, Amman has continued to follow IMF guidelines, practicing careful monetary policy, making substantial headway with privatization, and opening the trade regime. Jordan's exports have significantly increased under the free trade accord with the US and Jordanian Qualifying Industrial Zones (QIZ), which allow Jordan to export goods duty free to the US. In 2006, Jordan reduced its debt-to-GDP ratio significantly. These measures have helped improve productivity and have made Jordan more attractive for foreign investment. Before the US-led war in Iraq, Jordan imported most of its oil from Iraq. Since 2003, however, Jordan has been more dependent on oil from other Gulf nations, and the government has raised retail petroleum product prices and the sales tax base. The main challenges facing Jordan are reducing dependence on foreign grants, reducing the budget deficit, attracting investments, and creating jobs.

GDP (purchasing power parity):
$28.18 billion (2007 est.)

GDP (official exchange rate):
$13.55 billion (2007 est.)

GDP - real growth rate:
5.7% (2007 est.)

GDP - per capita (PPP):
$4,700 (2007 est.)

GDP - composition by sector:
agriculture: 3.7%
industry: 10.5%
services: 85.8% (2007 est.)

Labor force:
1.563 million (2007 est.)

Labor force - by occupation:
agriculture: 5%
industry: 12.5%
services: 82.5% (2001 est.)

Unemployment rate:
13.5% official rate; unofficial rate is approximately 30% (2007 est.)

Population below poverty line:
14.2% (2002)

Household income or consumption by percentage share:
lowest 10%: 2.7%
highest 10%: 30.6% (2003)

Distribution of family income - Gini index:
38.8 (2003)

Inflation rate (consumer prices):
4.9% (2007 est.)

Investment (gross fixed):
27.8% of GDP (2007 est.)

Budget:
revenues: $4.999 billion
expenditures: $6.449 billion (2007 est.)

Public debt:
67.2% of GDP (2007 est.)

Agriculture - products:
citrus, tomatoes, cucumbers, olives; sheep, poultry, stone fruits, strawberries, dairy

Industries:
clothing, phosphate mining, fertilizers, pharmaceuticals, petroleum refining, cement, potash, inorganic chemicals, light manufacturing, tourism

Industrial production growth rate:
7.7% (2007 est.)

Electricity - production:
9.074 billion kWh (2005)

Electricity - consumption:
8.49 billion kWh (2005)

Electricity - exports:
4 million kWh (2005)

Electricity - imports:
741 million kWh (2005)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
109,000 bbl/day (2005 est.)

Oil - exports:
0 bbl/day (2004 est.)

Oil - imports:
106,400 bbl/day (2004 est.)

Oil - proved reserves:
1 million bbl (1 January 2006 est.)

natural gas - production:
268.5 million cu m (2005 est.)

natural gas - consumption:
1.496 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
1.228 billion cu m (2005)

natural gas - proved reserves:
5.975 billion cu m (1 January 2006 est.)

Current account balance:
-$1.69 billion (2007 est.)

Exports:
$6.037 billion f.o.b. (2007 est.)

Exports - commodities:
clothing, pharmaceuticals, potash, phosphates, fertilizers, vegetables, manufactures

Exports - partners:
US 25.2%, Iraq 16.9%, India 8%, Saudi Arabia 5.8%, Syria 4.7% (2006)

Imports:
$11.08 billion f.o.b. (2007 est.)

Imports - partners:
Saudi Arabia 23.2%, Germany 8.2%, China 8%, US 5.3% (2006)

Economic aid - recipient:
ODA, $752 million (2005 est.)

Reserves of foreign exchange and gold:
$8.595 billion (31 December 2007 est.)

Debt - external:
$7.483 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$8.154 billion (2006 est.)

Market value of publicly traded shares:
$29.73 billion (2006)

Currency (code):
Jordanian dinar (JOD)

Exchange rates:
Jordanian dinars per US dollar - 0.709 (2007), 0.709 (2006), 0.709 (2005), 0.709 (2004), 0.709 (2003)