Kingdom economic 'success' story despite challenges — JEF

AMMAN — The Jordan Economic Forum (JEF) said on Saturday that since its independence, Jordan has managed to build a “modern, diverse, sustainable and resilient” economy navigating through regional and global challenges.

"Jordan's economic journey over 79 years is a model of stability, determination, and strategic planning, and constitutes a solid foundation for a new start towards a sustainable digital economy effectively integrated into the global economy," JEF said in a statement marking Independence Day.

The Gross Domestic Product (GDP) has multiplied more than 80-fold since the 1960s, soaring from about JD430 million to over JD37.9 billion in 2024, with a compound annual nominal growth rate of 9.3 per cent. 

The GDP in dollars will exceed $53.4 billion in 2024, up from less than $1 billion in the 1960s, it added.

This transformation reflects the Kingdom's ability to build a “solid and diverse” economic base as the economic structure has evolved "significantly" since independence, according to a statement by the forum.

Agriculture was the "key" component of the GDP in the early decades, but it now accounts for just about 5 per cent, while the industrial sector's contribution rose to about 24 per cent, and the services sector to about 60 per cent, it noted.

The forum sees this as an expansion of economic activity and progress in building an economy with multiple drivers that is better able to grow and meet challenges, said the statement.

The forum added that the national economy managed to shift from a "limited" agricultural economy to a "modern", multi-sector economy, thanks to investment in human capital, infrastructure development and the adoption of “well-thought-out” economic policies that have maintained financial and monetary stability and boosted the business environment.

The Economic Modernisation Vision (EMV) aims to double the economy to some JD58 billion by 2033, create one million new jobs, and increase real per capita income by 3 per cent annually, according to the forum.

JEF recommended that Jordan offers a "real" opportunity for growth if it pursues improvement of the investment environment and supports "productive" sectors.

Also, the tourism sector holds a “strategic” position in the national development scheme and has seen "remarkable" growth, with revenues rising to about $7.4 billion in 2023, about 14.6 per cent of the GDP, when the Kingdom welcomed more than 6.3 million tourists.

JEF noted that Jordan managed to attract cumulative foreign direct investment of over $39.5 billion by 2023, mainly in vital sectors, such as infrastructure, energy and technology, reflecting international confidence in Jordan's investment environment and diverse economic opportunities.

It also noted that the Kingdom, through "prudent" monetary policies, consolidated the strength of the dinar over the past decades and continues to this day, thus enabling the banking sector to raise its performance to record levels, with bank assets exceeding JD70 billion, while cash deposits reached nearly JD48 billion, 85 per cent of which is in Jordanian dinar.

JEF President Mazen Hamoud pointed to free trade agreements Jordan had signed with world countries, more than 22 altogether, most notably with the US, the European Union, and Arab countries, underlining a global recognition of the country's credibility and political and economic stability.

"These agreements “implicitly testify” to efficient Jordanian laws, and the ability to create a reliable commercial and investment environment," he said.