Jordan’s economy is characterized as a developing market economy. Jordan’s GDP per capita increased by 351% in the 1970s, fell by 30% in the 1980s, and increased by 36% in the 1990s. Liberal economic policies were implemented after King Abdullah II’s accession to the throne in 1999. Between 1999 and 2008, Jordan’s GDP grew at an annual pace of 8% per year. Following the Arab Spring in 2011, however, growth decreased to 2%. Poverty and unemployment in the country have worsened as a result of the country’s growing population, slowing economic growth, and mounting public debt. Jordan has a GDP of $44.4 billion, which places it 89th in the world.
Jordan has FTAs with the United States, Canada, Singapore, Malaysia, the European Union, Tunisia, Algeria, Libya, Turkey, and Syria, among others. Iraq, the Palestinian Authority, the Gulf Cooperation Council, Lebanon, and Pakistan are all set to sign more FTAs. Jordan is a member of the GAFTA, the Euro-Mediterranean Free Trade Area, and the Agadir Agreement, as well as having advanced status with the EU.
Jordan’s economy is based on phosphates, potash, and fertilizer derivatives, tourism, remittances from abroad, and foreign aid. These are the company’s main sources of hard currency revenue. Jordan relies on natural gas for 93 percent of its domestic energy needs due to a lack of coal reserves, hydroelectric power, extensive expanses of forest, and commercially viable oil deposits. Jordan used to rely on Iraq for oil until the 2003 invasion of Iraq by the United States. Jordan also offers a slew of industrial zones dedicated to the textile, aerospace, defense, ICT, pharmaceutical, and cosmetics industries. Jordan is a knowledge-based economy that is only getting started.
Jordan’s economy is hampered by a lack of water, total reliance on oil imports for energy, and regional instability. Only around 10% of the land is arable, and the water supply is scarce. Rainfall is scarce and unpredictable, and much of Jordan’s groundwater is nonrenewable.
Jordan’s economy has declined in recent years, averaging roughly 2% per year. Jordan’s total foreign debt was $19 billion in 2011, accounting for 60% of its GDP. In 2016, the debt totaled $35.1 billion, accounting for 93.4 percent of the country’s GDP. The effects of regional instability are attributed to a decrease in tourist activity, a decrease in foreign investments, an increase in military expenditure, attacks on the Egyptian pipeline supplying the Kingdom with gas, the collapse of trade with Iraq and Syria, expenses from hosting Syrian refugees, and accumulated interest from loans. Syrian refugees cost Jordan more than $2.5 billion a year, according to the World Bank, accounting for 6% of GDP and 25% of the government’s annual revenue. As a result of the increased rivalry for jobs between Syrian migrants and Jordanians, wage growth has slowed significantly in Jordan. The decline, which began in 2011, has lasted until now. The Syrian civil war has had a significant impact on the country’s top five contributing sectors to GDP: government services, finance, manufacturing, transportation, and tourism and hospitality. Only a minor portion of these costs is funded by foreign aid; Jordan bears 63 percent of the overall costs. The government has implemented an austerity program with the goal of reducing Jordan’s debt-to-GDP ratio to 77 percent by 2021. The initiative was successful in keeping the debt from exceeding 95% in 2018.
Is Jordan a developing nation?
Jordan is the world’s second-poorest country in terms of water availability (MOWI, 2017). Jordan has one of the lowest levels of water resource availability per capita in the world as a water-scarce country, with only 125 cubic meters per person per year in 2017.
Is Jordan a wealthy nation?
Jordan is a key interest for the United States because of its location in the heart of the Middle East’s conflict. This is primarily why the US plans to provide Jordan with more than $1 billion in foreign aid in 2018, with a focus on military assistance, economic development, and health care.
Much of this aid is aimed at alleviating poverty in Jordan, which is a major source of discontent given that more than 14% of the population lives in poverty. Understanding Jordan’s poverty is crucial to addressing it, which will help the country and the Middle East as a whole secure a peaceful future. This list of ten facts about poverty in Jordan explains the underlying premise of the problem and possible remedies to Jordan’s problems.
Top 10 Poverty in Jordan Facts
Jordan, unlike many Middle Eastern countries, does not have huge oil deposits, which would be beneficial to its economy. The country also suffers from a harsh climate, which adds greatly to the country’s high poverty rates.
Poverty in Jordan, on the other hand, is not solely a result of a scarcity of natural resources or a widespread lack of income. Jordan is classified as a middle-income country by the United Nations. It is not wealthy, but neither is it in financial distress. Many of Jordan’s difficulties arise from how money is distributed throughout the country, rather than from a lack of it.
Jordan’s population have a low rate of economic involvement, which has exacerbated the country’s poverty problem. Jordan’s economic development has been poor, resulting in low pay and limited career prospects, discouraging citizens from participating in economic activities. This helps to explain why the US allocated a portion of its foreign aid to Jordan to economic growth, which is critical for poverty reduction.
Another issue in Jordan is the lack of a social welfare program that provides substantial benefits to the poor. This is linked to poor economic activity and traps citizens in poverty because there is little help available to help them recover. This exacerbates the country’s poor economic participation rates and poverty.
Jordan is facing a widening budget imbalance as a result of several external pressures and government mismanagement, with little money available to combat rising poverty levels and low economic participation rates.
Jordan’s inflation rates have skyrocketed as a result of rising national debt and economic hardship, which the government is ill-equipped to deal with. For struggling individuals, this devalues money quickly, discouraging savings and long-term investments. To make matters worse, fighting inflation risks increasing unemployment, further crippling those trying to get out of poverty.
Jordan was a very prosperous country in the early 1980s, with only 3% of the population living in poverty. Poverty became a widespread concern only after an economic crisis in the 1980s. Jordan was heavily struck by the crisis, and while the economy has recovered, the impacts are still felt by a large portion of the population.
Jordan has been rocked by the refugee crisis brought on by Syria’s terrible civil conflict. Thousands of civilians have flocked to the country in search of refuge from the fighting, putting the country’s economy under strain and increasing to the number of people living in poverty.
According to studies in Jordan, the majority of people living in poverty are either marginally below or slightly above the poverty line. This reflects the cyclical nature of poverty in Jordan, with many citizens repeatedly sliding back below the poverty line after briefly climbing above it.
The problem of poverty in Jordan is huge, and it can be difficult to grasp and control at times, but there are answers to the crisis. Increased foreign funding to the country to aid in economic development would boost the country’s ability to cope, especially given the present refugee intake. The implementation of cooperative health-improvement programs with the United Nations would also be beneficial. Such assistance is critical, and it has the potential to help Jordan become a pillar of stability in a region riven by political instability.
These ten Jordan poverty facts have described the fundamentals of Jordan’s political and economic difficulties that have resulted in high poverty rates, as well as many of the possible solutions. It is critical that the United States maintains its investment in allied countries in the region in order to avert additional political instability in the Middle East.
What will Jordan’s GDP per capita be in 2021?
According to Trading Economics global macro models and analysts, Jordan’s GDP per capita is anticipated to reach 3100.00 USD by the end of 2021. According to our econometric models, the Jordan GDP per capita is expected to trend at 3250.00 USD in 2022.
Is Jordan a wealthy or impoverished country?
Jordan (Hashemite Kingdom of Jordan) is a low-middle-income country with minimal natural resources and a semi-arid climate. Saudi Arabia is to the east and south, Iraq is to the north, Syria is to the north, and the West Bank and Israel are to the west.
Jordan’s debt is how much?
According to our econometric models, Jordan’s government debt to GDP is expected to trend at 102.00 percent of GDP in 2022.
Is Jordan oil-rich?
As of 2016, Jordan had 1,000,000 barrels of proved oil reserves, ranking 96th in the world and accounting for less than 0.000% of the world’s total oil reserves of 1,650,585,140,000 barrels.
Is Jordan’s economy doing well?
Jordan’s economy is ranked 87th in the 2022 Index for economic freedom, with a score of 60.1. Jordan is placed 5th out of 14 Middle Eastern and North African countries, and its overall score is higher than the regional and global norms.
Is Jordan an attractive place to work?
Jordan is a lovely place in which to live a modest life. There are a lot of investment options and the employment restrictions are pretty flexible. It’s a dynamic environment, although Jordan could use some more experienced workers. Now is a great opportunity to take a look and see whether you want to be a part of Jordan’s development. Let’s work together to make the country a better place!