Economy of Jordan

According to cheeroutdoor, the Jordanian economy is characterized by a weak resource endowment, a high degree of dependence on foreign trade and financial assistance. The average annual growth rate was 1.5% in 1981–91 and 4.5% in 1991–2001. In 2001, the volume of GDP at market prices was 626 billion dinars (8.94 billion US dollars), and GDP per capita was $1,750 (the average for the Middle East and North Africa region was $2,000). Economically active population in 2001 – 32%, approx. ¼ of this value are women. According to official figures, unemployment is 14.7%, according to other sources – 25 30%. OK. 12% of the population is below the poverty line. Inflation 1.8% (2001).

The structure of GDP is dominated by the service sector – 69.7%, the share of agriculture is 3.3%, mining 3.0%, manufacturing 15.9%, energy and water supply 2.6%, construction 5.5%. The vast majority of the economically active population is employed in the service sector (82% in 2001), another 13% in industrial production and 5% in agriculture.

One of the oldest industries is mining. In 2001, 5.88 million tons of phosphorites were mined. Their share in the country’s exports is declining (12% in 1997, 7% in 2001) due to the growing importance of other export items and more complete processing of raw materials within the country. Mining is carried out at the mines in Khas, Wadi al-Abyad and Chidia. In the southern part of the Dead Sea in Al-Safi, potash salts are mined by evaporation from sea water. The volume of production in 2001 amounted to 1.96 million tons of potash. Also, bromine, magnesium, sodium are extracted from the waters of the Dead Sea.

Production of hydrocarbon raw materials (oil and natural gas) is insignificant.

Based on the processing of natural raw materials, the chemical industry is developed. This is the production of potash, nitrogen-phosphorus and other fertilizers, phosphoric acid, industrial potash, various chemicals based on bromine and magnesium, table salt, etc. The largest companies engaged in the extraction and processing of chemical raw materials: owned by the state, and the Arab Potash Company, 53% of whose capital is also owned by the state. In 2001, 670 thousand tons of fertilizers and 1.4 million tons of various chemicals were produced. The main factories are located in Shidiya, Aqaba, Al-Safi, Numeira. Plastics, paints, detergents are also produced.

The only oil refinery in Jordan, located in Az-Zarqa and operating on imported raw materials, produced 3.6 million tons of oil products in 2001.

The production of cement and building materials is based on the processing of mineral raw materials. Large factories of this industry are located in Fuheis and Rashidiya. In 2001, 3.17 million tons of cement and 2.9 million tons of clinker bricks were produced.

The production of pharmaceutical and cosmetic products is developing dynamically. Due to its own production, 40% of domestic needs for medicines are satisfied, 70% of manufactured products are exported. In 2001, pharmaceutical products ranked third in terms of export value (after garments and potash salts). Cosmetic products based on salts and mud from the Dead Sea are exported to many European countries.

The textile and clothing industries, which are mainly export-oriented, are actively developing. During 1997-2001, the value of export of ready-made clothing increased by 7.7 times and amounted to 15% of the value of exports.

The metal-working and machine-building industries are underdeveloped.

The food and tobacco industries produce olive oil, dairy products, flour, and cigarettes.

The development of agriculture is greatly hampered by the arid climate. In most of the country, agriculture is impossible without irrigation. The area of irrigated land in 2001 was 75.6 thousand hectares. Land used in agriculture does not exceed 13.4% of the land fund, incl. 244 thousand hectares (2.7%) are arable land, 157 thousand hectares (1.7%) are under permanent crops and 791 thousand hectares (9%) are pastures.

The first place in terms of area is occupied by olive plantations (more than 64 thousand hectares), the harvest of olives in 2001 is 66 thousand tons. Grain crops (wheat, barley, corn) occupy 35 thousand hectares, in 2001 51.6 thousand.t of grain, this is not enough to meet domestic needs. More than 1.5 million tons of grain in the same year was imported from abroad. 26.4 thousand hectares of land are occupied by vegetables and melons, of which 775 thousand tons were produced. Fruit trees are located on 22.9 thousand hectares.

Sheep breeding (more than 1.8 million sheep) and goat breeding (534,000 heads) predominate among livestock industries. The number of cattle is growing (66.8 thousand heads).

In 2001, Jordan generated 7.37 billion kWh of electricity, 99% from thermal power plants using local gas and imported oil. The largest thermal power plants are located in Ar-Risha, Ez-Zarqa, Aqaba, the installed capacity of all power plants is 1500 MW.

The country’s only seaport, Aqaba, is located on the Red Sea. Its cargo turnover is 13 million tons, of which 15% is transit cargo (2001).

For the delivery of phosphorite ore to Aqaba, railway lines were built from the mines in Khas, Abyad and Chidia. A 452-kilometer section of the Hijaz railway, built as early as the beginning of the 19th century, also passes through the territory of India. 20th century and modernized. The road network has a total length of 7.24 thousand km. There are 379 thousand cars in the country, incl. 252 thousand cars.

The state aviation company of Jordan – Royal Jordan – in 2000 transported approx. 1.3 million passengers, it operates 16 aircraft and operates more than 100 flights a week. The country’s largest airport – Queen Alia International Airport – is located 40 km south of Amman, the second international airport is located in Aqaba. In 2001, 9.8 million passengers passed through all the airports in the country.

In recent years, the provision of the population with means of communication has noticeably increased: in 1995-2000, the number of fixed phones per 1,000 inhabitants increased from 58 to 93, mobile phones – from 2 to 58. There are 22.5 computers per 1,000 Jordanians, and the number of Internet users in 2002 was 178 thousand people The National Information System of Jordan has been created.

Of great importance for the economy of Jordan is tourism, the income from which in 2001 exceeded 9% of GDP. In the same year, more than 5.2 million foreign tourists visited the country. There are 472 hotels in the country, incl. 7 five star hotels.

Economy of Jordan