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The Jordanian economy

The Jordanian economy

The Jordanian economy has been witnessing a continuous stable growth. However, current tensions in the Middle East are a major factor in determining future outlook


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Jordan economy

Gross Domestic Products (“GDP”) saw its biggest growth spurt in 2005 as a result of Iraqis fleeing to Jordan and investing in the country. However by 2008, the global financial turmoil had a tremendous impact in the growth of the economy, due to a slowdown in FDI and overall global activity

Real GDP growth was also low in the past 5 years recording a Compounded Annual Growth (“CAGR”) of 2.7%. The stunted growth in the economy was mainly a result of the Arab spring that has created much civil unrest across the Middle East and North Africa

Going forward, Business Monitor International (“BMI”) forecast Real GDP to grow from JOD 21.5 Bn (“Billion”) in 2015 to JOD 27.0 Bn in 2020 at a CAGR of 4.7%

The expected modest growth is highly connected to the following aspects:

The ongoing Syrian conflict; The inflow of refugees has been challenging to the economy, however stability in Syria has a big factor to contribute to prosperity in Jordan

The threat of extremist terrorist groups could hinder FDI inflows and lower number of tourist 

Jordan has limited natural resources, with the exception of potash and potassium; thereby hindering its ability to have self sustainable growth

The increasing amount of domestic and international government debt have been creating a constrain for the government to play a role in the development of the economy


© 2021 KPMG Kawasmy & Partners, a partnership registered in Jordan, a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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