 ECONOMY |
Jordan is classified as a middle income developing country, with per capita GDP at current market prices equals $1553 in 1998.
 A severe economic crisis: 1988 - 1989 |
By the end of 1988, Jordan faced a severe economic crisis, as the exchange rate of the Jordanian Dinar fell by 31% of its value against major international currencies and continued to decline in 1989 by 26%. Economic growth was negative in 1988 and 1989, -1% and -14% respectively. The unemployment rate reached 20%, the external debt reached 200% of the GDP, foreign reserves were completely depleted, and the budget deficit amounted to an alarming level of 25%.
| Economic Adjustment Program 1992-1998 |
The economy was placed under an adjustment program in 1990 which was postponed because of the Gulf war crisis and a revised program was placed for the period 1992-1998.
During the adjustment period the following have been realized:
Containment of the inflation rate below 4%
Increase of the domestic revenues and reduction of the budget deficit from 18% of te GDP to 7%.
Decrease in the rate of external debt from about 200% of the GDP to 90%.
| Realizing a high growth rate the first 4 years 1992-1995 averaging 8% annually and marginal growth rate the year 1996-1998 about 1.5% annually less than 3.5% of the population annual increase
Budget deficit decreased from 18% in 1991 to 11% of the GDP in 1998.
Foreign exchange reserves increased to reasonable amount
Balance of Trade deficits continued very high
Unemployment continued to be at high levels, least estimate was at 15%
Stabilizing the exchange rate of the dinar
| The New Adjustment Program 1999 - 2001 |
It is a continuation of the adjustment program, aiming at reducing he budget deficit, and containing inflation and increasing growth rate.
Composition of GDP %
| | 1992 | 1998 | | Agriculture | 11 | 4.9 | | Mining and Quarrying | 2.8 | 3.1 | | Manufacturing | 13.3 | 13.8 | | Electricity & Water | 3.1 | 3.9 | | Constructions | 7.2 | 6.5 | | Others (Service Sectors) | 6.6 | 67.8 |
| INRASTRUCTURE |
Jordan has excellent infrastructure compared to developing countries, with regard to electricity, transportation and communications, health services and education. Jordan has supporting facilities and institutions, industrial estates, free zones, industrial development bank, investment promotion corporations and other related instructions. |
