page_title: Jordan
section_title: Economy
hierarchical_section_title: Jordan / Economy
caption_attribution_description: English: Jordan Export Treemap from MIT Harvard Economic Complexity Observatory
context_page_description: Jordan, officially the Hashemite Kingdom of Jordan, is an Arab country in Western Asia, on the East Bank of the Jordan River. Jordan is bordered by Saudi Arabia to the south and the east, Iraq to the north-east, Syria to the north and Israel and Palestine to the west. The Dead Sea is located along its western borders and the country has a 26-kilometre coastline on the Red Sea in its extreme south-west. Jordan is strategically located at the crossroads of Asia, Africa and Europe. The capital, Amman, is Jordan's most populous city as well as the country's economic, political and cultural centre.
  What is now Jordan has been inhabited by humans since the Paleolithic period. Three stable kingdoms emerged there at the end of the Bronze Age: Ammon, Moab and Edom. Later rulers include the Nabataean Kingdom, the Roman Empire, and the Ottoman Empire. After the Great Arab Revolt against the Ottomans in 1916 during World War I, the Ottoman Empire was partitioned by Britain and France. The Emirate of Transjordan was established in 1921 by the Hashemite, then Emir, Abdullah I, and the emirate became a British protectorate.
context_section_description: Jordan is classified by the World Bank as an "upper-middle income" country. However, approximately 14.4% of the population lives below the national poverty line on a longterm basis (as of 2010), while almost a third fell below the national poverty line during some time of the year—known as transient poverty. The economy, which has a GDP of $39.453 billion (as of 2016), grew at an average rate of 8% per annum between 2004 and 2008, and around 2.6% 2010 onwards. GDP per capita rose by 351% in the 1970s, declined 30% in the 1980s, and rose 36% in the 1990s—currently $9,406 per capita by purchasing power parity. The Jordanian economy is one of the smallest economies in the region, and the country's populace suffers from relatively high rates of unemployment and poverty.
  Jordan's economy is relatively well diversified. Trade and finance combined account for nearly one-third of GDP; transportation and communication, public utilities, and construction account for one-fifth, and mining and manufacturing constitute nearly another fifth. Net official development assistance to Jordan in 2009 totalled US$761 million; according to the government, approximately two-thirds of this was allocated as grants, of which half was direct budget support.
  
  The official currency is the Jordanian dinar, which is pegged to the IMF's special drawing rights (SDRs), equivalent to an exchange rate of 1 US$ ≡ 0.709 dinar, or approximately 1 dinar ≡ 1.41044 dollars. In 2000, Jordan joined the World Trade Organization and signed the Jordan–United States Free Trade Agreement, thus becoming the first Arab country to establish a free trade agreement with the United States. Jordan enjoys advanced status with the EU, which has facilitated greater access to export to European markets. Due to slow domestic growth, high energy and food subsidies and a bloated public-sector workforce, Jordan usually runs annual budget deficits.
  The Great Recession and the turmoil caused by the Arab Spring have depressed Jordan's GDP growth, damaging trade, industry, construction and tourism. Tourist arrivals have dropped sharply since 2011. Since 2011, the natural gas pipeline in Sinai supplying Jordan from Egypt was attacked 32 times by Islamic State affiliates. Jordan incurred billions of dollars in losses because it had to substitute more expensive heavy-fuel oils to generate electricity. In November 2012, the government cut subsidies on fuel, increasing its price. The decision, which was later revoked, caused large scale protests to break out across the country.
  Jordan's total foreign debt in 2011 was $19 billion, representing 60% of its GDP. In 2016, the debt reached $35.1 billion representing 93% of its GDP. This substantial increase is attributed to effects of regional instability causing: decrease in tourist activity; decreased foreign investments; increased military expenditure; attacks on Egyptian pipeline; the collapse of trade with Iraq and Syria; expenses from hosting Syrian refugees and accumulated interests from loans. According to the World Bank, Syrian refugees have cost Jordan more than $2.5 billion a year, amounting to 6% of the GDP and 25% of the government's annual revenue. Foreign aid covers only a small part of these costs, 63% of the total costs are covered by Jordan. An austerity programme was adopted by the government which aims to reduce Jordan's debt-to-GDP ratio to 77 percent by 2021. The programme succeeded in preventing the debt from rising above 95% in 2018.
  The proportion of well-educated and skilled workers in Jordan is among the highest in the region in sectors such as ICT and industry, due to a relatively modern educational system. This has attracted large foreign investments to Jordan and has enabled the country to export its workforce to Persian Gulf countries. Flows of remittances to Jordan grew rapidly, particularly during the end of the 1970s and 1980s, and remains an important source of external funding. Remittances from Jordanian expatriates were $3.8 billion in 2015, a notable rise in the amount of transfers compared to 2014 where remitt
caption: A proportional representation of Jordan's exports
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