Jordan WT/TPR/S/206 
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I. ECONOMIC ENVIRONMENT 
(1) MAJOR FEATURES OF THE ECONOMY  
1. The Hashemite Kingdom of Jordan borders Syria to the north, Iraq to the north-east, Israel 
and Palestine to the west, and Saudi Arabia to the ea st and south.  It has a land mass of 89,342 square 
km, with 27 km of coastline.1  With a growth rate of 2.3% in 20062, the population, estimated at 
around 5.7 million and urbanized at 83%, is relatively young: 37.3% ar e in the 0-14 age group, and 
only 3.3% are 65 years or over. About one third of Jordanians (2.1 million) live in the capital Amman. 
Jordan ranks 86 (out of 177 countries) on the UNDP's Human Development Index.3 
2. Jordan is a lower middle-income country, with  a GDP per capita estimated at US$2,767 for 
2007.4  About 14% of Jordanians live below the poverty line.5  Jordan has limited agricultural land 
(about 12% of total land), almost no oil resources, and water is very scarce.6  The services sector 
contributes around two thirds to Jordan's GDP, and employs over 75% of the workforce.7 
Manufacturing is responsible for about one fifth of  GDP, and absorbs over 10% of total employment. 
Agriculture and related activities account for nearly  3% of GDP, and employs some 3% of the labour 
force.8 
3. Jordan has one of the world's highest levels  of workers' remittances and public grants: 
together they amount to around 22% of GDP.  The economy also benefits from a relatively well 
developed infrastructure, and a strategic geographi c location. Some of the key weaknesses of the 
economy include its high unemployment rate (about 14%);   an active-to-total population ratio that is 
among the lowest in the world, with an average of four non-active individuals depending on a single 
worker; low labour productivity and labour market imbalances9; and limited sources of funding, an 
unfavourable taxation structure (among the highest within Arab countries), and costly transport 
infrastructure and utilities, which have affect ed the development of private companies.10 
4. The Jordanian dinar (JD), the national currency, is  fully convertible and has been linked to the 
U.S dollar at a fixed exchange rate (JD = US$1. 41) since 23 October 1995.  The objectives of the 
Central Bank of Jordan (CBJ) are to maintain monetary stability (price stability for goods and 
services, and appropriate interest rate structure), to  ensure the convertibility of the JD, and to help 
promote sustained economic growth.11  Jordan accepted the obligati ons of Article VIII of the IMF 
                                                      
1 Jordan shares with Israel the coastline of the D ead Sea, and the Gulf of Aqaba with Israel, Saudi 
Arabia, and Egypt. 
2 Department of Statistics (2007a). 
3 UNDP (2007). 
4 IMF (2007). 
5 Government of Jordan online information. Viewed  at: http://www.nationalagenda.jo/Portals/0/English 
Booklet.pdf. 
6 Jordan's main natural resources are copper, industrial minerals, o il shale, potash, phosphate, and 
uranium. 
7 Department of Statistics (2007b). 
8 World Bank (2008). 
9 Jordan's labour policy, including restrictions on foreign labour, is not adequately aligned with the 
needs of the private sector. 
10 Government of Jordan online information. Vi ewed at: http://www.nationalagenda.jo/Portals/0/ 
EnglishBooklet.pdf. 
11 Article 4 of the CBJ Law (No. 23/1971).  The CBJ started operations on 1 October 1964. It replaced 
the Jordan Currency Board established in 1950. The CBJ is an independent and autonomous body, although its capital is totally owned by the Government (CBJ onl ine information. Viewed at: http://www.cbj.gov.jo). WT/TPR/S/206 Trade Policy Review 
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Agreement on 20 February 1995.  There are no rest rictions on capital receipts or payments by 
residents or non-residents. 
(2) RECENT ECONOMIC DEVELOPMENTS  
5. Since the 1988-89 debt crisis, Jordan has embarked on an economic reform programme 
centred on trade liberalization, deregulation, and pr ivatization, with the support of international 
organizations, including the IMF and the World Bank.12  The programme is aimed at, inter alia , 
achieving sustainable GDP growth, alleviating pove rty, reducing the unemployment rate, improving 
education and health services, modernizing the infrastructure, creating a more business-friendly 
environment to attract larger foreign direct inv estment (FDI) inflows, reducing public debt, and 
increasing the role of the private sector in the economy (Chapters II(5) and III(4)(iii)). 
6. Despite the difficult external context, notably regional instability (with a large influx of 
refugees)13, the loss of preferential oil deliveries from Iraq, and rising food import prices, Jordan's 
reform programme, together with its development st rategy, have resulted over the last few years in 
consistently high GDP growth, limited core infl ation (i.e. inflation excluding food, fuel, and 
transport), and an improved fiscal situation.  N onetheless, Jordan faces key structural problems, 
including a high trade deficit (section (3)(i)) below), and structural unemployment.14  Real GDP grew 
at an annual average rate of 5.9% during 2000-07  (4.2% over 1990-99), peaking at 8.6% in 2004 
(Table I.1).  Growth has been led by strong dome stic demand and large FDI inflows, partly through 
privatizations.  In addition, total factor productivity has increased by 2.5% annually since 2000, well above historical norms.
15  Real GDP growth of 5.5% is expected for 2008, helped by significant FDI 
projects.16 
7. The annual average inflation rate in Jordan, as measured by the consumer price index (CPI), 
was 3.1% during 2000-07 (5% during 1990-99).  Howeve r, it reached 6.3% in 2006 and 5.4% in 2007, 
reflecting mainly fuel and food price increases.  In general, the pegged excha nge rate arrangement has 
served the Jordanian economy well;  it has lent stability  and credibility to the investment environment, 
and provided a credible anchor for price stability . Nonetheless, the depreciation of the U.S. dollar 
against other major currencies since 2006 has contributed  to the rise in Jordan's inflation rate.  To 
manage liquidity in the financial system, the CBJ b asically relies on indirect instruments of monetary 
control, notably the purchase and sale of certificates of deposit.17  Core inflation has remained below 
3% over the last few years.18  To contain inflationary pressures,  the Government recently eliminated 
import duties and sales taxes on certain products considered essential19, while the CBJ has tightened 
its monetary policy. Inflation is  expected to be 10.9% for 2008.20 
                                                      
12 The joint World Bank and International Finance Corporation country assistance strategy (CAS) 
2006-10 is aligned with Jordan's National Agenda 2006-1 5. Under the CAS,  a lending ceiling is envisaged of 
up to US$540 million over four years (IMF, 2007). 
13 It is estimated that over half a million Iraqis have moved to Jordan (9% of the population) since 2003 
(IRIN News-UN Office for the Coordination of Human itarian Affairs online information. Viewed at: 
http://www.irinnews.org/Report.aspx?R eportId=77972 [1 July 2008]). 
14 IMF (2007). 
15 World Bank (2007). 
16 IMF (2008). 
17 Central Bank of Jordan (2007). 
18 IMF (2007). 
19 In April 2008, the Cabinet decided to exempt some essential commoditie s (e.g. meat , fish, and 
poultry) from customs duties ranging between 5% and 20% (IMF Morning Press, 16 April 2008). 
20 IMF (2008).  Jordan WT/TPR/S/206 
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Table I.1 
Selected economic indicators, 2002-07 
 2002 2003 2004 2005 2006 2007a 
Miscellaneous       
Nominal GDP (US$ million)  .. 10,196 11,398 12,712 14,257 15,973 
Real GDP (percentage change) 5.8 4.2 8.6 7.1 6.3 5.7 
GDP per capita (US$) .. 1,961 2,131 2,317 2,533 2,767 
Consumer price index (average; percen tage change) 1.8 1.6 3.4 3.5 6.3 5.4 
Unemployment rate (percent) .. 14.5 12.5 14.8 14.0 .. 
Monetary sector       
M1 (percentage change) 7.0 12.4 11.7 17.0 14.1 .. 
M2 (percentage change) 7.0 11.9 8.6 20.1 14.1 .. 
Private sector credit (percentage change) 3.2 3.5 17.3 30.3 24.5 .. 
Share of GDP (percent)       
Agriculture and related activities .. .. .. 2.8 2.7 .. 
Industry  .. .. .. 29.6 31.7 .. 
   Manufacturing .. .. .. 19.2 20.7 .. 
Services .. .. .. 67.6 65.6 .. 
Public finances (percentage of GDP)       
Overall fiscal balance (including grants)b -3.2 -2.7 -2.7 -5.3 -4.4 -5.4 
Overall fiscal balance (excluding grants)b -10.5 -15.7 -12.8 -10.9 -7.5 -8.4 
Revenue and grants 32.1 36.3 36.6 34.2 34.7 34.9 
Expenditure and net lendi ng (including off-budget) 35.3 39.0 39.3 39.6 39.1 40.4 
Public debt 98.4 98.2 88.8 83.8 73.5 60.3c 
National accounts (JD million)       
Private consumption 5,154 5,531 6,558 .. .. .. 
Government consumption 1,542 1,676 1,723 .. .. .. 
Gross fixed capital formation 1,287 1,491 2,005 .. .. .. 
Change in inventories 78 16 210 .. .. .. 
Exports (goods and services) 3,222 3,419 4,212 .. .. .. 
Imports (goods and services) 4,490 4,903 6,626 .. .. .. 
External sector       
Exchange rate (US$ per JD ) 1.41 1.41 1.41 1.41 1.41 1.41 
Real effective exchange rate (percentage change)c .. -7.2 -3.9 -0.3 6.0 .. 
Current account (percentage of GDP)b 5.7 12.2 0.8 -17.4 -11.3 -17.3 
Gross international reserves (US$ million) .. 4,740 4,826 4,745 6,104 6,870 
Gross international reserves (months of imports) .. 6.5 5.2 4.8 5.6 5.5 
External debt (US$ million)  7,544 7,603 7,542 7,130 7,313 5,342c 
External debt (percentage of GDP) 78.8 74.6 66.1 56.6 51.9 29.5c 
a Projected or preliminary. 
b Negative sign indicates deficit. c At end-March 2008. 
Source:  IMF (2007), Jordan: Fifth Post-Program Monitoring Discussions , Washington, D.C.; IMF International Financial 
 Statistics,  various issues; World Bank (2008), Jordan at a glance , Washington, D.C.; and information provided by 
 the Jordanian authorities. 
8. Jordan has improved its public debt situation, a main source of macroeconomic imbalances in 
the past. Public debt as percentage of GDP dec lined from 98.4% in 2002 to 60.3%, currently, mainly 
due to a debt buyback agreement reached with ten Paris Club members at the end of March 2008.21  
Led by, inter alia , robust economic growth and more effici ent tax collection, government revenues 
averaged 34.8% of GDP per year over 2002-07, wh ile expenditure and net lending (including off-
budget) averaged 38.8% (Table I.1).  Jordan has al so faced a surge in world prices for oil and cereals 
(including barley) over the last few years. As a r esult, its overall fiscal deficit (including grants), as 
                                                      
21 The agreement reduced the outstanding balance of  external debt from US$7,698.7 million to 
US$5,336.1 million. It had an average discount of about 11% of debt service value (Ministry of Finance, 2008). WT/TPR/S/206 Trade Policy Review 
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percentage of GDP, rose from 3.2% in 2002 to 5. 4% in 2007. Import duties represented, on average, 
13.7% of total tax revenue collected in Jordan during 2004-06.22  To address the fiscal deficit in the 
2008 Budget, the Government eliminated, generall y available fuel subsidies on 1 February 2008 
(Chapter IV(3)(iii);  but the subsidies for barley and bread remain in place, at a cost of around 2% of 
GDP. 
9. In line with the strong economic performance in the past years and the recent debt buyback 
agreement with Paris Club countries, Jordan's gro ss external debt fell from US$7,544 million in 2002 
(78.8% of GDP) to US$5,342 million (29.5% of GDP) at the end of March 2008.  As a result, the debt 
service arrangement for the next 14 years was resc heduled, with a reduction of the average annual 
payment of the principal by US$172 milli on and of the interest by US$65 million.23  This is also 
expected to help alleviate the burden on the fi scal budget, create a more favourable investment 
climate, and reduce Jordan's vulnerability to external shocks. 
(3) TRADE PERFORMANCE AND INVESTMENT  
(i) Trade in goods and services 
10. Jordan's external current account, as percen tage of GDP, moved from an increasing surplus 
during 2001-03 (12.2% in 2003) to deficits of 17.4% in 2005, and 17.3% in 2007, due mainly to 
strong import growth (Table I.1):  the trad e deficit jumped from US$1,423 million in 2001 to 
US$4,497.7 million in 2007 (Table I.2).  In recent y ears, the current account deficit has been financed 
by FDI and other long-term capital inflows, with gr oss official internationa l reserves increasing from 
US$4,745 million (4.8 months of im ports) in 2005 to US$6,870 milli on (5.5 months of imports) in 
2007.  An external current account deficit of 15.5% of GDP is expected for 2008.24 
11. Jordan's economy is increasingly dependent on in ternational trade: the ratio of merchandise 
trade (exports and imports) to GDP averaged 108 % during 2004-06.  In 2006, Jordan ranked 70th 
among world merchandise exporters (considering the countries of the EC together and excluding 
intra-EC trade), and 53rd among importers.  In commercial services trade, Jordan ranked 49th among 
exporters and 51st among importers.25 
12. Jordan has a relatively diversified export b ase, with manufactures accounting for about 70% 
of total merchandise exports, on average, during 2000- 07 (Chart I.1, and Table AI.1).  Chemicals are 
the main exports (26.3% of manufactured exports in 2007, up from 22.2% in 2000), followed by 
textiles and clothing products, and machinery and transport equipment.  The contribution of food 
products (led by tomatoes and other vegetables) to total merchandise exports remained stable at 
around 14% on average over 2000-07, while the share of mining products declined from 11.1% in 
2000 to 6.5%. 
13. Jordan's imports have increased in line with its significant economic growth over the last few 
years.  Total merchandise imports more th an tripled from US$4,013 million in 2000 to 
US$13,531 million in 2007 (Table AI.3).  Al most 60% of total merchandise imports are 
manufactures, led by machinery and transport equi pment; chemicals, office machines and telecoms 
equipment, automotive products, and textiles also  represent a sizeable share (Chart I.1 and 
Table AI.3).  Fuels represented 21.7% of tota l merchandise imports in 2007 (up from 4.8% in 2000), 
whereas the share of food imports decreased from 21.2% to 15% during the same period. 
                                                      
22 WTO (2008). 
23 Ministry of Finance (2008). 
24 IMF (2008). 
25 WTO (2008). Jordan WT/TPR/S/206 
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Table I.2 
Balance of payments, 2001-07 
(JD million)  
 2001 2002 2003 2004 2005 2006 2007 
A.   Current  account 3.3 385.8 882.6 62.9 -1,559.4 -1,133.3 -1,990.6 
1.   Trade balance (net) -1,423.0 -1,227.1 -1,415.3 -2,395.1 -3,556.3 -3,584.7 -4,497.7 
 Exports (f.o.b.) 1,626.7 1,963.9 2,184.9 2,753.0 3,049.7 3,689.9 4,041.3 
 Imports (f.o.b.) 3,049.7 3,191.0 3,600.2 5,148.1 6,606.0 7,274.6 8,539.0 
2.   Services (net) -169.0 -77.1 -100.0 -51.8 -147.8 -44.8 -35.3 
 Travel (net) 228.4 422.0 432.2 571.4 606.5 867.4 1,013.1 
 Transportation (net) -339.5 -339.7 -370.6 -482.6 -618.1 -714.9 -823.0 
 Government services (net) -81.1 -158.9 -119.1 -108.0 12.3 -42.1 -34.7 
 Other services (net) 23.2 -0.5 -42.5 -32.6 -148.5 -155.2 -190.7 
3.   Income 135.6 84.7 124.9 229.6 289.7 411.7 572.3 
 Compensation of employees (net) 126.5 140.9 137.1 169.8 198.3 228.0 272.1 
 Investment income (net) 9.1 -56.2 -12.2 59.8 91.4 183.7 300.2 
4.   Current transfers (net) 1,459.7 1,605.3 2,273.0 2,280.2 1,855.0 2,084.5 1,970.1 
 Public 327.0 361.5 995.8 939.6 528.4 547.6 264.9 
 Other sectors (net) 1,132.7 1,243.8 1,277.2 1,340.6 1,326.5 1,509.9 1,705.2 
  Workers remittances (net) 1,162.5 1,241.0 1,262.6 1,289.5 1,326.4 1,531.6 1,822.9 
B.   Capital and financial account  59.7 -344.6 -986.0 -199.4 982.7 1,173.9 1,158.8 
5.   Capital account 15.3 48.8 66.3 1.5 6.0 44.5 9.1 
6.   Financial account 44.4 -393.4 -1,052.3 -200.9 976.7 1,129.4 1,149.7 
 Foreign direct investment 105.1 76.4 316.8 565.9 1,142.1 2,414.6 1,348.8 
 Portfolio investment -201.6 -291.2 -334.4 -204.8 221.7 -26.1 595.5 
 Other investment -48.3 464.3 -200.3 -503.9 -257.0 -299.5 -217.7 
7.   Reserves assets  189.2 -642.9 -834.4 -58.1 -130.1 -959.6 -576.9 
  Monetary gold -0.8 -0.9 -0.3 0.0 0.0 0.7 -28.8 
  Special drawing rights -0.5 0.2 -0.1 -0.5 0.6 -0.5 -0.7 
  Foreign exchange 190.5 -642.2 -834.0 -57.6 -130.7 -959.8 -547.4 
C.   Net errors and omissions 63.0 41.2 -103.4 -136.5 -576.8 40.6 -831.8 
Source:  Information provided by the Jordanian authorities. 
14. Asia and the Middle East together supplied 54. 6% of Jordan's total merchandise imports in 
2007 (36.7% in 2000).  The EC is the leading sour ce of Jordan's merchandise imports with 24.2% of 
the total in 2007 (down from 35.7% in 2000), followed by Saudi Arabia (21%), and China (9.7%).  The United States supplied 4.7% of Jordan's me rchandise imports in 2007 (11.3% in 2000), while 
Egypt's share was 4.4% (up from 1.1% in 2000) (Table AI.4). 
15. Balance of payments data indicate that Jordan  is a net importer of services, with a deficit 
averaging JD 89.4 million per year during 2001-07 (Tab le I.2).  The deficit of transportation services 
went from JD 339.5 million in 2001 to JD 823 million in 2007, partly offsetting an increasing surplus 
of travel services, which went from JD 228.4 milli on to JD 1,013.1 million during the same period. 
 WT/TPR/S/206 Trade Policy Review 
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0%10%20%30%40%50%60%70%80%90%100%
2000 2001 2002 2003 2004 2005 2006 2007Chart I.1
Structure of merchandise trade, 2000-07
(a) Exports, including re-exports (f.o.b.)
(b) Imports (c.i.f.)
Source:     WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data.0%10%20%30%40%50%60%70%80%90%100%
2000 2001 2002 2003 2004 2005 2006 2007
Food
Ores and other minerals
Chemicals
Other semi-manufacturesNon-electrical machinery
Electrical machines
Textiles and clothingOther consumer goods
Other
Transport equipment
Food
Non-ferrous metals
Iron and steelFuelsChemicals
Other semi-manufactures
Non-electrical machineryTransport equipment
Textiles and clothing
Other consumer goods
Electrical machines Other
 
 Jordan WT/TPR/S/206 
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0% 20% 40% 60% 80% 100%20002001200220032004200520062007Chart I.2
Direction of merchandise trade, 2000-07
0% 20% 40% 60% 80% 100%20002001200220032004200520062007(a) Exports, including re-exports (f.o.b.)
(b) Imports (c.i.f.)
Source:     WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data.Per cent
United States
EgyptAlgeriaEC(25)Six East Asian traders
Free zonesOther AsiaSyria
LebanonKuwaitIsraelSudan
UAESaudi ArabiaIraq
United States
ItalyGermanyOther AmericaIsrael
JapanChinaEgypt
UAESyriaSaudi ArabiaFrance
UkraineTurkeyUnited KingdomOther Asia
OtherOther
Six Ea st Asian tra ders
 
 WT/TPR/S/206 Trade Policy Review 
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(ii) Investment 
16. Jordan's average annual inflow of FDI ju mped from an annual average of US$155 million 
during 1990-00 (37.1% of GDP in 2000) to US$3,1 21 million in 2006 (114.2% of GDP) (Table I.3).  
This was largely the result of the positive develo pments in the economy over the period, the steps 
taken by Jordan to improve the investment climate (e.g. enactment of the I nvestment Promotion Law, 
and launching of the one-stop shop facility), and some privatizations carried out through FDI 
(Chapters II(5) and III(4)(iii)). 
Table I.3 
Foreign direct investment, 2001-06 
(US$ million) 
 2001 2002 2003 2004 2005 2006 
FDI inflows 100 56 436 651 1,532 3,121 
FDI (% of gross fixed capital formation) .. ..  23.0 51.3 99.1 
FDI inward stock 10,554 10,610 11,046 11,697 13,229 16,350 
FDI inward stock (% of GDP) .. .. .. .. 105.5 114.2 
.. Not available. 
Source:  UNCTAD (2007), World Investment Report 2007: Jordan , Geneva.  
17. Jordan ranked 8th out of 141 economies in 2006 (19th in 2005) in UNCTAD's Inward FDI 
Performance Index.26  Nonetheless, Jordan's vast potentia l for attracting foreign investors and 
fostering domestic investment remains somewhat untapped.  Its position in UNCTAD's Inward FDI 
Potential Index was 59th in 2005 (61st in 2004).27  This is mainly because, in general, FDI in Jordan 
has been inhibited by, inter alia , administrative hurdles for starting a business.28  As a result, Jordan 
ranks 80th (out of 178 economies) in the World Bank's Ease of Doing Business 2008 Index (79th in 
2007).29  In addition, limitations are maintained on foreign participation in certain activities 
(Chapter II(5)). 
18. Total investment based on projects benefiting from incentives under the Investment 
Promotion Law amounted, on an approval basis, to US$3,131.9 million in 2007 (up from 
US$1,118.5 million in 2000).  Most of these projects  have been concentrated in the manufacturing 
sector (79.3% of the total in 2007);  followed by t ourism, notably hotels (18.3%); hospitals (1.3%); 
and agriculture (0.8%). According to the authoriti es, foreign investment represented around 47% of 
total investment in 2007. 
(4) OUTLOOK  
19. Despite the evolution of world oil prices, the re gional security situation, and fluctuations in 
the flows of short-term external capital, the Jo rdanian economy has performed well over the recent 
past. Aware of these challenges, Jordan has committed itself to continuing its economic reform 
programme in the coming years, with a view to unlocking its growth potential, achieving sustainable 
                                                      
26 UNCTAD's Inward FDI Performance Index measures  the extent to which host countries receive 
inward FDI, and ranks countries by the amount of FDI they receive rela tive to their econo mic size. It is 
calculated as the ratio of a country's share in global FD I inflows to its share in global GDP (UNCTAD, 2007). 
27 UNCTAD's Inward FDI Potential Index measures the extent to which host countries receive inward 
FDI, and ranks countries by the amount of FDI they receive relative to their potential. It is calculated on the basis of structural variable s, such as country risk, and trade-related measures. 
28 Government of Jordan online information. Viewed at: http://www.national 
agenda.jo/Portals/0/EnglishBooklet.pdf. 
29 The index is based on ten topics (in parenthesis is Jordan's ranking out of 178 economies), i.e. 
starting a business (133);  dealing with licences (71);  employing workers (45);  registering property (109); 
getting credit (84);  protecting investors (107);  paying taxes (19);  trading across borders (59);  enforcing contracts (128); and closing a business (87) (World Bank, 2007). Jordan WT/TPR/S/206 
 Page 9 
 
 
development, and improving the quality of life of its population.  Moreover, it is to pursue its 
structural reforms by, inter alia , lifting the remaining impediments to FDI and reducing the size of the 
public sector, while further encourag ing private sector participation. 
20. Using the demographic opportunity of a very young population to transform Jordan into a 
modern knowledge-based economy is at the core of the National Agenda.  It considers equal human 
development as key to achieving sustainable economic  development.  The Na tional Agenda is being 
implemented in three phases:  phase I ("employment opportunities for all", 2007-12) is aimed at, inter 
alia, eradicating structural unemployment through labour-intensive and export-oriented industries, 
and traded services;  phase II ("upgrade and strengt hen the industrial base", 2013-17) is to promote 
more capital-intensive industries and value-added jo bs;  and phase III ("world-class competitor in the 
global knowledge economy" , 2018 onwards) is to focus on evolving selected economic sectors.30  
Education31, improving the business environment, and reduc ing poverty to 10% are at the centre of 
the Agenda. 
21. The National Agenda sets out ambitious targets to be achieved by 2017, including: an annual 
real GDP growth rate of 7.2% as from 2007; re ducing public debt (to GDP) to 36%; converting the 
public deficit into surplus; and reducing unempl oyment to 6.8% (Table I.4).  During the 2006-15 
period, several sector-specific investment in itiatives (i.e. apparel, pharmaceuticals, food and 
beverages, minerals, iron and steel, furniture, agri culture, tourism, healthcare, and software and 
information technology) are also envisaged at an expected cost of JD 1.5 billion. If properly 
implemented, such initiatives would return a net surplus of JD 1.7 billion.32 
Table I.4 
Main socio-economic targets, 2012 and 2017 
 2012 2017 
Real GDP (average annual growth) 8.0 7.0 
Public debt (percentage of GDP) 63.0 36.0 
Budget deficit/surplus excluding gran ts (percentage of GDP) -3.6 1.8 
Capital investments (percentage of GDP) 21.0 24.0 
National savings (percentage of GDP) 23.0 27.0 
Net exports/imports (US$ billion) -1.7 -0.9 
Inward FDI stock (percentage of GDP) 35.0 40.0 
SMEs contribution to GDP (percentage of GDP) 35.0 40.0 
Unemployment (percentage of active population) 9.3 6.8 
Poverty rate (percentage) 12.0 10.0 
Source:  Government of Jordan (2006), National Agenda 2006-15: The Jordan we strive for , Amman.  
                                                      
30 Government of Jordan online information. Viewed at: http://www.national 
agenda.jo/Portals/0/EnglishBooklet.pdf. 
31 Since 2003, the Government has been implementing a comprehensive cutting-edge education 
modernization programme, aimed at radically overhauling the basic education system to align it with the needs 
of a competitive economy. 
32 Government of Jordan online information. Viewed at: http://www.national 
agenda.jo/Portals/0/EnglishBooklet.pdf.