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Jordan’s Economy to Grow by 2.2% in 2019

By Market Research Jordan | Posted May 7, 2019


World Bank report recorded that Jordan’s economy is forecasted to grow by 2.2% in 2019 and rise slightly to 2.4% in 2020. The forecasted number indicates a slight drop from previous projections by the World Bank, as the earlier report this year projected the Kingdom’s growth for 2019 to reach up to 2.7% by 2021.

In addition to comparatively low economic growth, many oil-importing countries in Middle East and North Africa (MENA) economies have persistent trade and current account deficits. Despite the fall in growth this year, regional growth is projected to see a modest upstick to 2.4% in 2020 and 2.7% in 2021.


eco-jerash

Source:pixabay

The Hashemite Kingdom of Jordan, the official name of the country located in Western Asia on the Jordan River’s East Bank, is a relatively small country, among the smallest in the region, with an area of about 34.495 square miles and equally small economy. However, following the ascension of King Abdullah II back in 1999, the Kingdom’s economy had been improving steadily at a rate of 8% every year until 200 when Arab Spring caused a disruption.

Jordan Economic Growth Plan (JEGP) 2018-2022

Attempting to boost the economy, His Majesty King Abdullah unveiled an ambitious economic stimulus plan for five years period (2018-2022) named Jordan Economic Growth Plan (JEGP), including reforms in various sectors with JOD 6.9 billion (USD 9.7 billion) worth project and private sector investment opportunities amounting to JOD 9.5 billion (USD 13.4 billion). Here are some biggest industries and potential sectors in the Kingdom of Jordan, including real estate, manufacturing, IT industry and energy sector.

The JEGP is comprised of economic, fiscal and sectoral strategies, outlining the vision and policies for each sector. It further identifies the required public projects and private investments that must be undertaken to realize these sectoral visions. Along with the approval from International Monetary Fund (IMF) for a three-year extended arrangement under the Extended Fund Facility (EFF) for Jordan in August 2018 for USD 723 million, Jordan is projected to be put on a sustainable growth trajectory and ensure its economic resilience in the face of regional turmoil.

Ease of Doing Business

Recognizing the importance of enhancing the Kingdom’s business ecosystem, Jordan is cutting the red-tape and bureaucracy, upgrading its economic legislation framework and streamlining its economic judicial transactions. As listed in the plan, the government of Jordan has undertaken important steps in each of the aforementioned dimensions, which will significantly enhance the Kingdom’s ability to attract and retain investments.


eco-plan

Source:pixabay

The government of Jordan has committed to a number of reforms which call for re-engineering, digitizing and outsourcing the key businesses interactions with the government in addition to allow virtual office among other measures. Furthermore, the government jas and will present to the parliament a number of new laws and bylaws, such as for bankruptcy and insolvency, upholding of shareholders agreements, the movable assets law, the companies law and removal goodwill tax to upgrade its legislation framework.

Digitization

Moving away from seeing Information and Communications Technology (ICT) as an isolated sector. Jordan is moving towards digitizing the entire Jordanian economy. This vision is also laid out in the national digital strategy called REACH2025, in which 96 specific action items have been developed and hinged around integrating various technologies into the Kingdom’s leading economic sectors.


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Source:pixabay

Moreover, Jordan is aiming to capitalize on its competitive advantages of having high quality of human capital, favorable project economies, competitive wages and its convenient time-zone by positioning itself as a digital outsourcing hub in the region and internationally. To that end, the government has undertaken a series of projects, including National Broadband Network, aiming at connecting different healthcare, public and educational entities through fiber-optic networks, advancing e-Gov, as well as attracting a consortium of companies to position Jordan as a tech-outsourcing hub and build required infrastructure for supporting E-transformations.




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