Jordan’s state of economy

On June 7, 1999, four months after His Majesty King Abdullah took the lead of the country, I published an article in Al Rai newspaper in an attempt to give a picture of the state of the economy as at the end of 1998 to serve as a reference to compare what will be achieved after a number of years. 

On that day, I wrote that when King Abdullah II ascended to the throne of the country, the national economy was stagnating. 

Poverty covered some one third of the population. Unemployment was estimated by the Centre for Strategic Studies at the University of Jordan to be as high as 27 per cent.

Jordan was sinking in foreign debt to the extent of $7 billion, equal to 90 per cent of GDP at current prices. Internal debt was JD1.15 billion, or 20 per cent of GDP.

The budget deficit exceeded 9 per cent of GDP.

Democracy and press freedom was graded at 5 points out of 10.

Corruption and mismanagement in the public and private sectors were not brought to account.

Jordan’s relations with Iraq, the Gulf states and Syria were bad. Now we can ask ourselves what happened after eighteen years of the new period.

In what areas did we achieve a tangible progress and in what areas did we retreat or fail to progress enough?

Jordan’s economy is currently growing at the humble rate of 2.5 per cent a year.

GDP rose by 134 per cent in real terms or 490 per cent in current prices. Poverty rate according to the most recent survey is estimated to have declined to 14 per cent.

Unemployment rate rose to 15.8 per cent.

External public debt doubled to reach $14.5 billion. Its ratio to GDP dropped from 100 per cent to 37 per cent, or 40 per cent of total debt.

Domestic debt increased 10 fold to reach JD13.8 billion in current prices.

It made a big jump in its ratio to GDP, as it rose five times in current prices, at the annual rate of 9.4 per cent or 4.8 times in fixed prices.

The budget deficit before grants is equal to 6.2 per cent of GDP, 3.2 per cent after grants.

As far as democracy, freedom of press and corruption are concerned, it is very difficult to come up with a quantitative estimate of the positive progress that took place over 18 years.

We are only sure that corruption is now under pressure and accountable.

Jordan’s relations with all Arab and foreign countries are excellent.

Economic and social development over the last 18 years was good in general. 

However, the King is definitely not satisfied with the progress achieved, which is short of his ambition. He will definitely continue to prod the authorities to accelerate progress and improve performance. 

Jordan’s progress is much better compared to that of other Arab countries.