Economy of Jordan

The economy of Jordan is a middle-income economy, but it faces challenges. Jordan has limited natural resources and little land for farming. As of 2023, Jordan's total economic value, known as GDP, is US$50.85 billion, ranking it 89th in the world.

Jordan has many free trade agreements with countries like the United States, Canada, and the European Union, which help it trade goods more easily. It is also part of larger trade groups aiming to boost commerce across many nations.

The main sources of money for Jordan come from selling things like phosphates and potash, tourism, money sent home by Jordanians working abroad, and help from other countries. Because Jordan does not have its own oil, it buys most of its energy from other places. It also makes goods in factories, such as textile products and pharmaceutical medicines.

Jordan has struggled with debt and economic difficulties, especially after the Syrian civil war. The country has worked to improve its economy through careful budgeting and new trade deals, like the one signed with the UAE in 2025 to increase trade and investment.

Currency

The Central Bank of Jordan began operating in 1964 and is the only place that makes Jordanian money, called the Jordanian dinar. This money is linked to the US dollar, so its value changes with the US dollar.

There is a chart showing how Jordan’s money grows over time, made by the International Monetary Fund.

Jordan has a population of 6,342,948 people.

Year	Gross domestic product (JD million)	$US exchange	Inflation index (2000=100)
1980	1,165	0.29 Jordanian dinars	35
1985	1,971	0.39 Jordanian dinars	45
1990	2,761	0.66 Jordanian dinars	70
1995	4,715	0.70 Jordanian dinars	87
2005	9,118	0.70 Jordanian dinars	112

Economic overview

Jordan is an "Upper-middle-income country" by the UN. It has one of the freest economies in the Middle East and North Africa, ranking fourth behind Israel, Bahrain, and Qatar. Jordan's banking system is strong and well-developed.

The official currency in Jordan is the Jordanian dinar, tied to the US dollar. This helps keep prices steady.

Jordan has high unemployment, especially among young people and women. Many Jordanians work in nearby countries and send money home, which helps the economy. Jordan is known for its technology and software industries, with many global tech companies having offices there. The country is safe and often listed as one of the safest places to walk at night.

Year	GDP (in bn. US$ PPP)	GDP per capita (in US$ PPP)	GDP (in bn. US$ nominal)	GDP growth (real)	Inflation (in percent)	Government debt (in % of GDP)
1980	8.82	3,978	3.93	11.1%	10.9%	n/a
1985	14.65	5,326	5.03	−1.1%	2.8%	n/a
1990	16.83	4,834	4.19	−1.6%	16.2%	227.5%
1995	24.31	5,453	6.76	6.0%	2.4%	117.8%
2000	31.00	6,131	8.73	4.2%	0.7%	99.3%
2005	47.66	8,392	13.13	8.8%	3.5%	73.0%
2006	53.31	8,774	15.80	8.5%	6.3%	66.3%
2007	59.34	9,166	17.96	8.4%	4.7%	64.3%
2008	64.95	9,792	22.65	7.4%	14.0%	54.2%
2009	68.63	10,122	24.54	5.0%	-0.7%	58.0%
2010	71.07	10,254	27.13	2.3%	4.8%	59.4%
2011	74.52	10,482	29.52	2.7%	4.2%	62.1%
2012	77.76	10,782	31.68	2.4%	4.5%	70.5%
2013	81.14	10,545	34.50	2.6%	4.8%	75.6%
2014	85.35	9,858	36.90	3.4%	2.9%	75.0%
2015	88.29	9,300	38.64	2.5%	−0.9%	78.4%
2016	90.91	9,123	39.95	2.0%	−0.8%	77.4%
2017	94.83	9,283	41.67	2.5%	3.3%	75.7%
2018	94.60	9,045	43.43	1.9%	4.5%	74.3%
2019	100.63	9,405	44.57	1.8%	0.8%	78.0%
2020	104.08	9,524	43.76	−1.1%	0.3%	88.0%
2021	101.62	9,115	46.36	3.7%	1.3%	93.3%
2022	111.51	9,880	48.72	2.4%	4.2%	93.0%
2023	118.54	10,456	50.89	2.6%	2.1%	92.8%
2024	124.28	10,917	53.31	2.4%	2.1%	91.7%

Industries

Agriculture, forestry, and fishing

The agriculture sector makes up only 2.4% of Jordan's economy. About 4% of workers are in farming. The most successful farming is growing fruits and vegetables like tomatoes, cucumbers, citrus, and bananas in the Jordan Valley. Other crops, like grains, change a lot because of uneven rainfall. Fishing and forestry are very small parts of the economy. Fishing is split between catching live fish and fish farming. Forestry is even smaller.

Since independence, Jordan's farming has grown a lot. Vegetable production grew, and fruit production rose, meeting both local and international needs. Jordanian farm products now reach many countries. Livestock numbers grew, and the value of animal products rose. Farm jobs grew, now employing many workers. These changes help food security, economic ties, and job creation in rural areas.

Mining and minerals

Potash and phosphates are important exports for Jordan. In 2003, potash made US$192 million in exports, making it the second most valuable export. In 2004, phosphate rock made US$135 million in exports, ranking fourth among Jordan's main exports. Jordan was the world's third largest producer of raw phosphates. Smaller amounts of unrefined salt, copper ore, gypsum, manganese ore, and materials for making ceramics are also mined. Jordan has enough wheat to meet local needs for the next ten months.

Industry and manufacturing

The industrial sector made up about 26% of Jordan's economy in 2004. Main products are potash, phosphates, pharmaceuticals, cement, clothes, and fertilizers. Construction is a growing part of this sector. Manufacturing has also grown, partly because of the United States–Jordan Free Trade Agreement. This agreement created industrial zones that make light products like ready-made clothes.

Jordan's free trade agreement with the US has made the US one of Jordan's biggest markets. Jordan has many industrial zones with tax benefits to help new businesses. Jordan has abundant potash and phosphates, which are used to make fertilizers. Despite challenges like depending on imported materials, Jordan's open economy and strong industries should keep bringing in money from other countries.

Telecoms and IT

Telecommunications is a big industry, worth about $1.18 billion a year. Jordan's IT sector is the most developed in the region because of telecom liberalization in 2001. The mobile market is very competitive, with three operators. Increased competition has led to better prices for users.

National strategies for the IT sector started around the year 2000. The IT sector now makes up over 14% of the economy. Employment in the sector grew to 60,000 by 2008. The government is working on IT training and opportunities to increase IT use in society.

Energy

Energy is a big challenge for Jordan's economy. The government has a plan to reduce reliance on imported energy. The plan aims to have renewables provide 10% of energy by 2020.

Jordan has very little oil of its own and relies heavily on oil imports. Jordan has large oil shale resources, which could produce a lot of oil. Natural gas is being used more for electricity.

The National Electric Power Company produces most of Jordan's electricity. Since 2000, efforts to bring in private companies have started. About 99% of people have electricity.

Transport

Transportation adds about 10% to Jordan's economy each year. In 2008, the government made a new plan to improve the transport sector. With ongoing issues, Jordan is likely to stay a key point for moving goods and people. Main events coming up include moving Aqaba's main port and building a national railway system.

In late June 2025, Jordan's Transport Minister checked new bus routes from Irbid and Jerash to Amman. Full service will start in July and August. This is part of a five-year plan to improve public transport across the country.

Media and advertising

Jordan's media has become more private and open in recent years. In 2007, ads spent about $280 million in Jordan's media. The biggest event in 2007 was the planned launch of a private TV station, which was cancelled. So, the state-owned Jordan TV remains the only broadcaster. In recent years, Jordan has seen a big rise in blogs, websites, and news sites.

2007 was a great year for Jordan's advertising industry, growing by 30%. Since 2000, ad spending has grown from $77 million to $280 million in 2007. The telecom sector spent the most in 2007. As the industry grows, it will naturally slow down.

Services

Services made up over 70% of Jordan's economy in 2004. In 2002, nearly 75% of workers were in this sector.

Jordan's banking system has many banks, with total assets of 57 billion Jordanian dinars. From 2010 to 2020, the sector's assets grew each year. The banking sector is seen as advanced. In 2007, profits for listed banks rose. Jordan's strong growth led to a big increase in loans. Many banks were hurt by a drop in the Amman Stock Market in 2006, so they focused more on basic banking in 2007.

The construction sector added to Jordan's GDP in 2007. The Great Amman Municipality finished its plan for the capital. Big developments outside Amman include more homes and turning Aqaba into a business and tourist spot.

Jordan's insurance market has many companies. Motor insurance makes up most of the market. The sector has potential but is underdeveloped. Challenges include rising prices and people not understanding products well.

Tourism

Tourism is seen as having more potential than it currently has, given Jordan's rich history, ancient ruins, and varied landscape. Despite efforts, the industry is still hurt by instability in the region. More than 5 million visitors came to Jordan in 2004, bringing in US$1.3 billion. Tourism directly employs about 30,000 people and contributes 10% to the kingdom's GDP.

The sector is guided by the government's National Tourism Strategy, created in 2004. The strategy focuses on seven areas. The Jordan Tourism Board's marketing budget grew. The sector needs improvements in infrastructure and marketing, but overall, it has been improving for several years.

Jordan's real GDP dropped in 2020, with a big drop in tourism being one of the main reasons. Tourism provides a big part of Jordan's export earnings and GDP. The sector's share of GDP fell in 2020, and recovery is likely to be slow.

External trade

Since 1995, Jordan's economy has grown very slowly, with its total value increasing by about 1.5% each year. Many people in Jordan struggle to find jobs.

Even with these challenges, prices for goods and services have stayed steady because of careful financial management and keeping its money tied to the United States Dollar.

Jordanian exports in 2006

Jordan expected more trade and visitors after making peace with Israel, but this did not happen as much as hoped. Rules making it hard to trade with the West Bank and the Gaza Strip caused a big drop in exports to those areas. After King Abdullah took over, he worked to improve ties with countries in the Persian Gulf and Syria. Recently, Jordan has focused on joining the WTO and making a special agreement with the U.S. to help grow its exports.

Investment

The total value of companies on Jordan's stock market was $37.639 billion in 2005, according to the World Bank.

Salaries

A 2015 survey by Bayt.com found that people from GCC countries were a little happier with their salary increases in 2014 than people from the Levant region.

Aqaba Special Economic Zone

Main article: Aqaba Special Economic Zone Authority

Aqaba is a small city in Jordan with about 100,000 people. It is expected to grow a lot in the next ten years. Aqaba is at the southern tip of the country, close to the Red Sea, Saudi Arabia, and Israel. This makes it a good place for trade because it is near important routes and has Jordan's only deep-water port.

Since 2001, the Aqaba Special Economic Zone has helped the city develop. It covers an area of 375 km². The zone offers special benefits to businesses, like lower taxes and easier rules. Companies there pay a low tax of 5% and don’t have to pay taxes on imports or property. This has made Aqaba attractive for investment. The zone aims to grow more, focusing on tourism, finance, and industry.