Day: March 27, 2024

Amman: Jordan’s Gross Domestic Product (GDP) has experienced a substantial five-fold increase since the turn of the century, reflecting a robust economic trajectory from 1999 to 2022.

The GDP surged from approximately JD7.12 billion in 1999 to an impressive JD34.54 billion in 2022, as reported by official sources.

During the initial decade of the 21st century, the Jordanian economy witnessed a noteworthy acceleration, characterized by an average annual real growth rate of 5.5 percent between 1999 and 2008. The peak of this growth occurred from 2004 to 2008, with an average annual real growth rate of 6.2 percent.

Over the entire period spanning from 1999 to 2022, Jordan maintained a commendable growth rate of 3.7 percent, outpacing the average growth rates observed both regionally in the Arab world and globally. Throughout the years 1999 to 2009, Jordan consistently sustained real growth rates surpassing those of the global and regional averages. However, from 2010 to 2018, annual real growth rates averaged
2.5 percent.

Unfortunately, the economic landscape encountered a significant downturn during the period of 2019 to 2022 due to the adverse effects of the COVID-19 pandemic. In 2020, growth plummeted to -1.1 percent, marking a stark contrast to previous years. Nonetheless, signs of recovery emerged in 2021, signaling a resilient economy poised for revitalization.

Political and social affairs researcher and former minister, Hazem Qashou, attributed the accelerated growth of the Jordanian economy to various factors. Notably, investments in fixed assets such as land and real estate across numerous governorates, coupled with improved income levels including a notable four-fold increase in the minimum wage, have fostered a sense of security and stability for citizens.

Qashou cited the book “The Great Transition,” published by the King Abdullah II Fund for Development, which underscores Jordan’s ability to navigate through global economic crises while safeguarding the stability of its monetary system.

Despite th
e strides made in economic growth, Qashou acknowledged the challenges that hindered Jordan from reaching its full potential. Factors such as population growth, unemployment, and external crises including regional conflicts and the COVID-19 pandemic have imposed constraints on economic empowerment and private sector development.

Furthermore, Alaa Bashayreh, a professor of Economics at Hashemite University, highlighted the impact of political and economic events on inflation rates in Jordan. Events such as the global financial crisis of 2008, the Arab Spring, and the influx of Syrian refugees have contributed to fluctuations in inflation rates, stimulating both challenges and opportunities for economic growth.

Bashayreh emphasized the intricate relationship between inflation and GDP, noting that while inflation may ignite current GDP, real output growth may lag behind. Despite challenges posed by waves of refugees, she noted their positive contribution to real production through increased investments, particu
larly in sectors such as food production.

In response to the global financial crisis, the Jordanian government implemented measures to safeguard citizens’ deposits in the banking sector until the end of 2010. Additionally, the Central Bank adjusted the mandatory reserve ratio to manage inflationary pressures, demonstrating proactive steps to stabilize the economy amidst global turbulence.

Source: Jordan News Agency

Amman: Jordan’s Gross Domestic Product (GDP) has experienced a substantial five-fold increase since the turn of the century, reflecting a robust economic trajectory from 1999 to 2022.

The GDP surged from approximately JD7.12 billion in 1999 to an impressive JD34.54 billion in 2022, as reported by official sources.

During the initial decade of the 21st century, the Jordanian economy witnessed a noteworthy acceleration, characterized by an average annual real growth rate of 5.5 percent between 1999 and 2008. The peak of this growth occurred from 2004 to 2008, with an average annual real growth rate of 6.2 percent.

Over the entire period spanning from 1999 to 2022, Jordan maintained a commendable growth rate of 3.7 percent, outpacing the average growth rates observed both regionally in the Arab world and globally. Throughout the years 1999 to 2009, Jordan consistently sustained real growth rates surpassing those of the global and regional averages. However, from 2010 to 2018, annual real growth rates averaged
2.5 percent.

Unfortunately, the economic landscape encountered a significant downturn during the period of 2019 to 2022 due to the adverse effects of the COVID-19 pandemic. In 2020, growth plummeted to -1.1 percent, marking a stark contrast to previous years. Nonetheless, signs of recovery emerged in 2021, signaling a resilient economy poised for revitalization.

Political and social affairs researcher and former minister, Hazem Qashou, attributed the accelerated growth of the Jordanian economy to various factors. Notably, investments in fixed assets such as land and real estate across numerous governorates, coupled with improved income levels including a notable four-fold increase in the minimum wage, have fostered a sense of security and stability for citizens.

Qashou cited the book “The Great Transition,” published by the King Abdullah II Fund for Development, which underscores Jordan’s ability to navigate through global economic crises while safeguarding the stability of its monetary system.

Despite th
e strides made in economic growth, Qashou acknowledged the challenges that hindered Jordan from reaching its full potential. Factors such as population growth, unemployment, and external crises including regional conflicts and the COVID-19 pandemic have imposed constraints on economic empowerment and private sector development.

Furthermore, Alaa Bashayreh, a professor of Economics at Hashemite University, highlighted the impact of political and economic events on inflation rates in Jordan. Events such as the global financial crisis of 2008, the Arab Spring, and the influx of Syrian refugees have contributed to fluctuations in inflation rates, stimulating both challenges and opportunities for economic growth.

Bashayreh emphasized the intricate relationship between inflation and GDP, noting that while inflation may ignite current GDP, real output growth may lag behind. Despite challenges posed by waves of refugees, she noted their positive contribution to real production through increased investments, particu
larly in sectors such as food production.

In response to the global financial crisis, the Jordanian government implemented measures to safeguard citizens’ deposits in the banking sector until the end of 2010. Additionally, the Central Bank adjusted the mandatory reserve ratio to manage inflationary pressures, demonstrating proactive steps to stabilize the economy amidst global turbulence.

Source: Jordan News Agency