Following a positive uptick in growth metrics from the onset of 2023, the national economy has consistently demonstrated macroeconomic stability, robust growth rates, and significant boosts in national export volumes and tourism activity. The Jordan News Agency (Petra), based on a series of economic indicators for this fiscal year, confirms a rise in the Gross Domestic Product (GDP) at constant market prices by 2.8% in the first quarter compared to the same period in the prior year. Among the various sectors, the agriculture, forestry, and fishing sector experienced the most substantial growth rate in this period, registering a 7.4% surge, contributing 0.38 percentage points to the overall growth rate. The construction sector trailed closely, marking a 5.9% growth, contributing 0.14 percentage points. Subsequently, the transportation, storage, and communications sector rose by 4.8%, contributing 0.42 percentage points, with the extractive industries sector showing a 3.5% growth, adding 0.10 percentage points to the total growth rate. A contraction in the nation's trade balance deficit by 2.7% was reported during the first third of this year, reaching JD2.940 billion, a reduction from JD3.023 billion in the same period of the previous year. The value of national exports saw an upward trajectory during the first third of this year, with a 4% rise, culminating in JD2.682 billion compared to approximately JD2.579 billion for the corresponding period last year. Additionally, the nation observed a dip in the unemployment rate by 0.9 percentage points in Q1 2023, and a 1.0 percentage point drop from the last quarter of the preceding year, arriving at 21.9%. Tourism revenue in the first five months surged by an astounding 68.4% to reach $2.826 billion, largely attributable to an influx of tourists. As of the end of May, remittances by Jordanian expatriates stood at about $1.4 billion, slightly below $1.421 billion during the same period last year. The total number of securities lodged with the Securities Depository Center at the end of June was 7.6 billion, valued at approximately JD20 billion. Meanwhile, the total area of approved construction in the nation expanded by 24.1% in the first third of the year, reaching around 2.872 million square meters, an increase from 2.314 million square meters during the same period the prior year. The general industrial producer price index rose in the first third of this year by 0.17% to 139.99, a climb from 136.76 during the same timeframe in the previous year. This confluence of statistical data underscores that the national economy has embarked on a positive trajectory since the onset of the year, showing notable signs of recovery and growth, following the economic grip of the COVID-19 pandemic, which led to stagnant growth rates and amplified unemployment rates over two years. Jawad Anani, an economic expert, informed the Jordan News Agency (Petra) of substantial improvements in certain economic sectors during H1 2023, notably the tourism sector and national export incline, including mining industries. Anani emphasized that despite some sectors being primed to contribute positively to the national economy, such as the construction sector, these sectors would need sufficient support to stimulate and rejuvenate them. He added that the agricultural sector has seen clear activity in recent years due to a variety of factors, including the diversification of agricultural products, the development of new markets for Jordanian products, and the establishment of agricultural contracts with many specialized companies. He urged the Ministry of Investment to redouble efforts to draw and promote foreign investments, enhancing the symbiotic relationship between government and private sectors to propel the national economy forward. Adding to this discourse, Muhammad Abu Hammour, a former Minister of Finance and economic expert, commended the national economy's performance during H1 2023, despite regional and global complexities and challenges. He mentioned that macroeconomic stability was maintained, monetary policies ensured stability in the dinar exchange rate, and the attractiveness of deposits in Jordanian dinars remained high, with sufficient foreign currency reserves preserved. Maher Mahrouq, the Director General of the Association of Jordanian Banks, assured that the national economy is steering towards positive growth, notwithstanding global adversities. He stressed that the significant contributions of the agricultural sector to growth in the first quarter underscore the opportunities that this sector presents, both from an economic and food security perspective. Musa Saket, a member of the Board of Directors of the Amman Chamber of Industry, also underscored the stable macroeconomic climate in the Kingdom over 2022 and 2023, a trend he anticipates will continue in the coming year. However, he cautioned that some economic indicators, such as competitiveness, investment environment index, unemployment and poverty rates, and industrial production indicators, demand attention due to a lack of significant progress. Qassem Hammouri, a professor of economics at Yarmouk University, echoed Saket's sentiments, underlining the need for rigorous projects to alleviate unemployment and poverty rates in the Kingdom, despite the existence of a vision for economic modernization. He stressed that the national economy still requires more robust efforts, swift implementation of economic reforms, and creation of real projects that provide employment opportunities for young people and help to reduce poverty rates in the Kingdom.
Source: Jordan News Agency