Economic trends
Jordan is classified by The World Bank as a "lower middle income country." It is a small country with limited natural resources (the country's three main resources are phosphates, potassium and limestone). Recent economic reforms aimed at liberalizing trade and attracting investments have allowed Jordan to reach good economi results. In 2010, the GDP growth rate was 3.4% adn in 2011 should remain at around 3.5%. Poverty, unemployment (about 13%) and a large foreign debt are the main problems of the country. The Jordanian economy remains vulnerable to external shocks and regional unrest. It is also very dependent on foreign aid, which reached more than a billion USD in 2008. The coutnry is troubled by a relatively large trade deficit, mainly due to the increase in food and energy product subsidies and linked to the decrease in international aid.
Jordan was very little affected by the financial crisis of 2008 and the country has experienced a moderate economic slowdown in the last two years, mostly due to the decrease in money transfers from the immigrant workforce in the countries of the Gulf, which represent on average 3 billion USD annually (15% of the GDP).
Main branches of industry
Agriculture represents about 4% of the GDP and employs less than 3% of the workforce. The lack of water creates an obstacle to agricultural development. The principal crops are wheat, barley, lentils, tomatoes, eggplants, citrus fruits, olives and grapes. Phosphates and potassium are the only natural resources of the country. It should be noted that 6 uranium deposits, representing 3% of the planet’s reserves, have been identified but to this day remain non-exploited. The manufacturing sector is rather limited and dominated by textiles, a sector presently in a state of crisis due to international competition.
Industry (mostly pharmaceutical) and mining together contribute to nearly 30% to GDP and concentrate one fifth of the workforce.
The services sector, which employs more than 77% of the workforce, contributes two thirds to GDP. Jordan is particularly active in the fields of communication technologies and financial services. The sectors of distribution and tourism infrastructures also contribute substantially to GDP, although they experienced a slowdown in the recent years. The construction and transport sectors are in full boom. The government encourages the new information technology and tourism sectors.
International trade
Jordan is very open to international trade. The share of foreign trade in the country's GDP is around 135%. Its trade balance is currently a deficit, due to its dependence on raw materials. Jordan is a member of the WTO and signed a free-trade agreement (FTA) with the USA in December 2001, removing customs duties on the majority of goods and services until 2010. Jordan has also signed an Agreement of Association with the EU. In june 2010, Jordan signed an accord with Turkey, Syria and Lebanon, in order to create a free-trade zone, with free circulation of goods and workforce between these four near-eastern countries.
The country’s top three export partners are India (16%), Iraq (16%) and the United States (13%). The main export commodities are clothes & clothing accessories, fertilizers, pharmaceutical products and edible vegetables. Jordan is also one of the top five exporters of phosphates (together with the USA, China, Russia and Morocco).
The top three import partners are Saudi Arabia (21%), China (10%) and the United States (6%). Jordan mainly imports mineral fuels & oils, vehicles, machinery, and electric & electronic equipment.
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