The National Economy Shows Positive Indicators Since the Beginning of the Year - Jordan News

Jordan News

22-02-2025

Despite regional challenges and their local impacts on the national economy, the Jordanian economy has demonstrated its preparedness to cope with changing circumstances and economic developments. It has achieved stable growth rates, reflecting its strength and resilience. اضافة اعلان Economic indicators in the Kingdom have shown an upward trend since the beginning of the year, benefiting from the confidence of various economic sectors. This confidence has been fostered by the government's efforts and its commitment to implementing the Economic Modernization Vision and simplifying procedures, which has positively impacted the business environment. Economists have emphasized that the national economy has strengths that support its stability and resilience, including Jordan's strategic geographical location, prudent monetary policy, strong economic relations with major global markets, and a young, skilled workforce. They pointed out that despite numerous challenges affecting various sectors, particularly tourism, investment, and finance, the economy has achieved several positive indicators, confirming its robustness and its ability to continue progressing. The Central Bank's foreign reserves have exceeded 21 billion dollars, while the dollarization rate (the process of replacing the local currency with the dollar) dropped to 18.4% by the end of last year. The inflation rate also decreased to 1.6%, with expectations for it to stabilize around 2% this year. The real estate market saw a 9% increase in trading volume in January, compared to the same period last year, reaching a total of approximately 545 million dinars. The Gross Domestic Product (GDP) of the Kingdom has quintupled since the beginning of this century. In 1999, it was around 7.12 billion dinars, and by 2023, it had risen to about 36 billion dinars at current prices. Per capita GDP increased from 1235 dinars in 2000 to 3133 dinars in 2023, and Jordan's foreign currency reserves reached a record high of nearly 21 billion dollars, compared to 4.7 billion dollars in 2000. Dr. Ezzedine Kanakrieh, former Minister of Finance and Head of the Social Security Investment Fund, highlighted that despite the region's instability, which has significantly impacted tourism, investment, and finance, the national economy has achieved positive growth indicators, including GDP growth and an increase in foreign currency reserves. Dr. Kanakrieh added that many public shareholding companies have reported annual profits, with several of them showing growth compared to previous years, signaling that investing in Jordan yields positive returns. Recent reports from the Social Security Investment Fund show growth in total income, reaching nearly one billion dinars in the past year, with the fund's assets rising to approximately 16 billion dinars by the end of the year, which represents about 40% of the national GDP. This reflects the economy's positive performance despite regional instability. Former Finance Minister and economic expert Dr. Mohammad Abu Hammour noted that Jordan's ability to adapt to and cope with various developments and crises is based on fundamental factors such as political and security stability, the Kingdom's distinguished relations with many countries, and the sound policies of the Central Bank of Jordan. Dr. Abu Hammour emphasized that Jordan has maintained low inflation rates of under 2%, despite high inflation in many countries in the region. The Central Bank's policies have played a key role in stabilizing prices and maintaining the stability of the Jordanian dinar. He also highlighted that Jordan's credit rating was upgraded by international rating agencies last year, and the ongoing financial and economic reforms in cooperation with the International Monetary Fund demonstrate the economy's resilience in facing difficulties. Dr. Iyad Abu Hletem, Head of the East Amman Industrial Investors Association, described Jordan's economy as strong and resilient, capable of overcoming external shocks. He emphasized Jordan's political stability, high credit rating, and effective monetary policies that have maintained the stability of the dinar and raised foreign reserves to record levels. Dr. Ahmed Al-Majali, an economic researcher, stated that despite political and economic storms in the region over the past two decades, the national economy has adapted to these challenges and achieved acceptable growth rates. He credited Jordan's flexible economic structure, which includes vital sectors such as financial services, tourism, technology, and manufacturing, for this success. He acknowledged that while the economy has remained resilient, challenges such as high unemployment rates, energy costs, and low productivity in some sectors still need deeper reforms to ensure sustainable growth. Economic expert Hossam Ayash concluded that despite the regional challenges, Jordan's economy has continued to grow at stable rates, which, although lower than expected, are still better than many other economies in the region. He also noted that the stable financial and monetary conditions in Jordan are rare exceptions in the region, providing the country with an advantage in sustaining growth.
Ayash emphasized that Jordan's economic policies have created a secure banking environment, promoting growth in the economy. With strategic investments in human resources, production efficiency, exports, and reducing the trade deficit, Jordan is poised to continue its growth trajectory.