Reviving export-driven growth presents ‘top challenge’ for Kingdom — economist

AMMAN — The Kingdom’s national exports during the first nine months of 2021 grew by 15.8 per cent, while its national imports grew by 21.2 per cent.  

However, Jordan's net exports show trade imbalance, as the Kingdom’s imports exceed its exports, according to data from the Department of Statistics (DoS).

Jordan’s domestic exports during the January-September period of 2021 reached JD4.283 billion, marking a 15.8 per cent increase in comparison with the same period of 2020, while its re-exports decreased by 4.1 per cent to 435.8 million, according to the DoS’ monthly report. 

Meanwhile, national imports only reached JD 10.894 billion, marking a 21.2 per cent increase in comparison with 2020, according to the DoS.

“Jordan’s growth needs to be driven by exports and investment, particularly export-supported foreign direct investment,” economist Wajdi Makhamreh told The Jordan Times. 

Makhamreh noted that maintaining a high level of exports is also very important to the economy. 

He also recommended the government to provide subsidies to domestic businesses to reduce their costs. This helps lower the price of domestic goods and services, encouraging consumers to buy domestic rather than imported goods, he noted.

“Reviving export-driven economic growth is one of the country’s top challenges, especially with Jordan’s small market,” Makhamreh added.

Jordan's fertiliser and agricultural pesticide exports increased by 80 per cent, while apparel exports increased by 13 per cent, phosphate 43 per cent and chemical exports increased by 25.6 per cent, according to the DoS. 

Jordan’s jewellery imports increased by 532 per cent and refined petroleum imports increased by 16.4 per cent.

“Gold is integral to most religious festivals and weddings. That is why, during the wedding season, the demand for gold increases, and therefore imports of jewellery increase,” Garo Izmirian, a jeweller, told The Jordan Times.