Economic situation Low growth rates, strong commitment to reform

Jordan is a resource-poor country with a weak economic base, a large informal sector and low resilience. The COVID-19 pandemic and the war in Ukraine have had a severe impact on the country's service-oriented economy. Tourism in particular has suffered greatly but has recovered in the recent past.

After the country had overcome the impact of the pandemic, the global rise in commodity prices caused by Russia's war of aggression against Ukraine impacted on Jordan's economy. Food prices had already begun to rise before the war broke out. In the first quarter of 2023, consumer prices rose by about 4 per cent over the levels of the previous year.

The International Monetary Fund (IMF) expects gross domestic product in Jordan to grow by 2.6 per cent in 2023. That is not enough to bring about a long-term reduction in the high level of unemployment. Economic indicators – low economic growth, a rising budget deficit, and rising public debt – remain problematic.

In June 2022, the government, at the initiative of the royal family, presented a reform package for more jobs and better living conditions. More money is to be invested in strategic and entrepreneurial projects, innovation, research, and development. Moreover, the government wants to create a conducive environment for the sustainable development of small and medium-sized enterprises.

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As at: 26/10/2023