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Jordan

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EconomicPoliticalStructural

Jordan – Quick View
ECR score50.42 (Mar 2011)
ECR rank68 (Mar 2011)
Economic
GDP (2010)USD 13.8 billion
GNI per capita PPP (2009)USD 5,730
FDI inflow (till Q3 2010)USD 1,356.33 million
Inflation (2010)5%
Central bank assets (2010)USD 16,924.45 million
Unemployment rate (Q4 2010)11.9%
Government deficit (Q3 2010)USD 551.84 million
Tax revenue (till Q3 2010)USD 3,185.14 million
Political
Government typeConstitutional Monarchy
Recent political crisisNA
Economic freedom score38th
Freedom of information score120th
Corruption perception index50th
Structural
Birth rate (2009)25 (per '000)
Population balanceUnder 15 years – 37%
Population balanceOver 50 years – 11%
Life expectancyMale – 72 years
Life expectancyFemale – 74 years
Mortality rate (2009)4 (per '000)
Literacy rate (2007)92%
Internet access27.2%

[Top] Economic Overview

Gross domestic product (GDP)

 In 2010, real GDP was estimated as JD 9.84 billion, increasing 3.5% over 2009.

(Source: Central Bank of Jordan, IMF)

Real GDP growth rate 

GDP growth rate of Jordan varied from 8.56% in 2004 to 7.61% in 2008.

 (Base Year: 1994 = 100)

(Source: Central Bank of Jordan)

 GDP at current prices

GDP at current prices for 2010 is JD 19.25 billion, increasing 8% over 2009.

 (Source: Central Bank of Jordan, IMF)

 Gross national income (GNI)

Gross National Income per capita at PPP, in 2009, amounted to USD 5,730.

(Source: World Bank)

Income tax

The individual income tax rates in Jordan are progressive up to 14%.

(Source: taxrates.cc

Corporate tax

Corporate tax in Jordan is levied from 14% to 30%, breaking down as follows:

  • 14% for all legal persons (lawyers)
  • 24% on companies across industries like communication, financial services, insurance
  • 30% on bank

(Source: taxrates.cc)

Inflation rate

Jordan experienced a steady increase in the inflation rate from 2000 to 2006. Furthermore, in 2008, the inflation rate reached a high of 13.9%, but in 2009 it declined sharply to -0.7%. Finally, in 2010, inflation rate was registered at 5%.

Foreign Direct Investment (FDI)

The FDI in Jordan has declined by 30.5% from JD 2005.7 million in 2008 to JD 967.40 million in Q3 2010.

Banking Sector Assets

In 2010, banking sector assets in Jordan accounted to JD 12,067.4 million, increasing 9.15% from 2009.

[Top] Financial Indicators & Government Financial

Consumer price index (CPI Index)

The CPI Index for 2010 was 124.47 points, compared to 118.54 points in 2009.

Jordan Consumer Price Index

(Source: Department of Statistics, Jordan)

Wholesale price index

Average wholesale price index in 2010 was 154.06 points, increasing 3.34% from 2009.

 

Wholesale Price Index (1998=100)

 

Q1

Q2

Q3

Q4

Average

2010

152.33

153.57

154.06

158.28

154.06

2009

148.70

147.64

149.63

150.35

149.08


(Source: Department of Statistics, Jordan
)

Interest rates

 

Interest rates, 2010 (%)

 

Q1

Q2

Q3

Q4

Weighted Average Interest Rates on Interbank

2.150

2.150

2.150

2.150

Weighted Average Interest Rate on Demand Deposits

0.480

0.480

0.420

0.440

Weighted Average Interest Rate on Time Deposits

3.680

3.410

3.420

3.400

Weighted Average Interest Rate on Saving Deposits

0.810

0.780

0.760

0.770

Weighted Average Interest Rates on Overdrafts

9.470

9.260

9.200

9.120

Weighted Average Interest Rates on Loans and Advances

9.170

9.010

9.080

9.010

Weighted Average Interest Rates on Discounted Bills and Bonds

9.230

9.280

9.450

9.410

Prime Lending Rate

8.200

8.200

8.200

8.200

Interest Rate on Repurchase Agreements

4.000

4.000

4.000

4.000

Overnight Deposit Window Rate

2.000

2.000

2.000

2.000


(Source:
Central Bank of Jordan)

Money supply

M1 includes all physical currency, deposits in checking accounts and negotiable order withdrawal accounts.

M2 refers to time deposits, exchange bills, mortgage bonds, and real estate bonds.

 

Money Supply (JD Million)

 

M1

M2

2010

6,550.000

22,306.700

2009

6,039.500

20,013.300

2008

5,573.000

18,304.200

2007

4,833.100

15,606.800

2006

4,566.500

14,109.700

2005

4,061.300

12,364.000

(Source: Central Bank of Jordan)

 

Gross domestic debt

As of Nov. 2010, the central government gross domestic debt amounted to JD 7,847 million.

Central Government Domestic Debt ( JD million)

 

2010 (Nov.)

2009

Central Government Gross Domestic Debt

7,847

7,086

Central government banks deposits

1,204

1,294

Central government net domestic debt

6,643

5,791

(Source: Central Bank of Jordan)

Outstanding external public debt

Till November 2010, the total external public debt amounted to JD 4,488.9 million.

(Source: Central Bank of Jordan)

Official exchange rate

The exchange rate of Jordanian Dinar (JD) per USD in 2010 was registered as 0.709, and has remained constant since 1996.

Jordan exchange rate

(Source: Central Bank of Jordan)

Government finances

Fiscal balance

The fiscal deficit for Q3 2010 was JD 393.60 million, compared to the deficit of JD 193 million in Q2 2010.

(Source: Central Bank of Jordan)

Total revenues

Total Revenues in the country, till Q3 2010, amounted to JD 3450.80 million.

Public Revenues (JD million)

Year

Total Revenues and Grants

Domestic revenues

Expenditure

2010 (Till Q3)

3,450.8

3,172.2

4,019.3

2009

4,526.200

4,192.800

2,884.000

2008

4,738.300

4,020.100

2,758.100

2007

3,971.500

3,628.100

2,472.100

2006

3,468.800

3,164.500

2,133.500

2005

3,062.100

2,561.800

1,765.800

(Source: Central Bank of Jordan)

Tax revenues

Tax revenues in Jordan increased steadily from 2005 to 2009 and till Q3 2010.
Jordan tax revenue

Foreign grants

Foreign grants received by the country in Q3 2010 amounted to JD 120.800 million.

(Source: Central Bank of Jordan)

Balance of payments

Balance of Payments (JD Million)

 

2010

2009

2008

2007

2006

2005

Q3

Q2

Q1

Current Account

-80.3

-379.8

-119.8

-797.2

-1,445.2

-2,038.0

-1,223.8

-1,610.6

 

Trade Balance (Net)

-1,187.5

-1,155.1

-1,054.2

-4,448.8

-5,084.4

-4,574.2

-3,584.7

-3,556.3

Services Account

265.3

192.1

102.1

521.8

249.6

22.0

-44.8

-147.8

Income Account

72.5

20.2

114.0

433.5

493.6

484.6

321.6

238.5

Current Transfers

769.4

563.0

718.3

2,696.3

2,896.0

2,029.6

2,084.5

1,855.0

Capital and Financial Account

-266.3

657.1

-13.8

440.8

1,323.8

1,662.8

1,369.9

1,131.9

Direct investment

317.9

318.7

333.6

1,671.5

1,996.6

1,825.0

2,610.6

1,291.3

Portfolio investment

-106.7

25.8

11.3

-447.0

406.8

595.8

-26.1

221.7

Other investment

50.5

-163.5

-175.0

1,425.1

-472.1

-190.2

-299.5

-257.0

Reserves Assets

-528.0

476.1

-183.7

-2,209.2

-808.2

-576.9

-959.6

-130.1

Errors and Omissions

346.6

-277.3

133.6

356.4

121.3

375.2

-146.1

487.7


(Source: Central Bank of Jordan)

[Top] Labour Force and Employment Overview

The unemployment rate in 2010 was recorded at 50%, where as in 2008 and 2009 the rate was 50.6% and 51.3% respectively.

 

Unemployment Rate (%)

 

2010

2009

2008

Q1

12.4

12.1

14.1

Q2

12.2

13.0

12.5

Q3

13.5

14.0

12.0

Q4

11.9

12.2

12.


(Source:
Department of Statistics, Jordan)

Total number of employed persons registered by the end of August 2010 was 11,981. Specifically, the employed female population accounted for 15.6%, while employed male population accounted for 84.4%.

(Source: Department of Statistics, Jordan)

Jordan employed persons

(Source: Department of Statistics, Jordan)

Average wage

In 2008, the average wage in the private sector was JD 321, and average wage in the public sector was JD 400.

(Source: Central bank of Jordan)

Employment (by economic activity)

Public administration and defense employ about 24.7% of the total population, followed by wholesale and retail trade, education and manufacturing accounting to 15.9%, 12%, and 10.1% respectively.

Percent Distribution of Employed Jordanians Age (15+) years by Economic Activity (%) August 2010

Economic Activity

Percentage distribution

Agriculture, forestry and fishing

1.8

Mining and quarrying

0.9

Manufacturing

10.1

Electricity, gas, steam and air conditioning supply

0.7

Water supply, sewerage, waste management and remediation activities

0.2

Construction

6.6

Wholesale and retail trade; repair of motor vehicles and motorcycles

15.9

Transportation and storage

8.5

Accommodation and food service activities

2.3

Information and communication

1.7

Financial and insurance activities

1.7

Real estate activities

0.5

Professional, scientific and technical activities

2.3

Administrative and support service activities

1.6

Public administration and defense; compulsory social security

24.7

Education

12.0

Human health and social work activities

4.8

Arts, entertainment and recreation

0.3

Other service activities

2.4

Activities of households as employers; undifferentiated goods and

services-producing activities of households for own use

0.5

Activities of extraterritorial organizations and bodies

0.5


(Source: Department of Statistics, Jordan)

[Top] Political Stability

Jordan is a constitutional monarchy, where constitutional power is divided into three branches - Executive, Legislative and Judiciary.

(Source: kinghussein.gov.jo

The executive branch

King Abdullah, the reigning monarch, is the chief executive of the Kingdom. He appoints the Prime Minister and members of the Upper House of the Parliament.

The king approves the laws before they are executed, approves the constitutional amendments and also has rights to take actions related to the defence and security of the nation.

The Prime Minister and the Council of Ministers overlook the administration of state affairs, and within one month of formation of the Cabinet, the Council of Ministers are required to present a political program to the parliament.

District and local government

Jordan is divided into twelve regional governates, each of which is headed by a governor. The district government is an extension of the central government and is the executive organ for carrying out cabinet decisions on the local level

(Source: kinghussein.gov.jo)

The legislative branch

The legislative powers are vested with the King and the Parliament, which is comprised of two chambers – House of Notables or the Senate and the House of Deputies.

  • Senate consists of 40 members, each elected for a four year term
  • House of Deputies consists of 80 members, each of which has a four year term

Both houses of Parliament have several permanent committees including: Legal, Financial, Administrative and Foreign Affairs.

(Source: kinghussein.gov.jo)

Judicial system

There are three categories of courts in the country - civil, religious and special courts. 

Civil Courts

  • The civil courts decide over civil and criminal matters, and over the cases brought against the government
  • The civil courts include - Magistrate Courts, Courts of First Instance, Courts of Appeal, High Administrative Courts and the Court of Cassation (Supreme Court)

Religious Courts 

  • The religious courts include Shari’a (Islamic law) courts and tribunals of other religious communities
  • Religious courts deal with matters involving personal law, such as marriage, divorce, inheritance and child custody

 Special Courts

  • The State Security Court is the special court that decide over the matters related to the external and internal security of the state

(Source: kinghussein.gov.jo)

 Business and economic freedom

Jordan scored 68.9 on the index of economic freedom, ranking it as the 38th freest economy in 2011.

(Source: Heritage.org)

Corruption perception

Jordan is ranked 50th on the Corruption Perceptions Index (CPI) 2010. CPI measures the perceived level of public-sector corruption across 180 countries and territories around the world.

(Source: transparency.org)

Freedom of information

The country’s media is under the control of state. According to the Reporters without Borders 2010 country report, the country’s media is restricted in its commentary on the monarchy, religion, state institutions and the men who head them.

Ad Dustour, Al Ra'y, Al Ghadd, Al Arab al Yawm, Jordan Times, and The Star are key newspapers in the country.

The country ranks 120th on the world press freedom index 2010.

Source: (BBC News, rsf.org)

[Top] Demographic Overview

The population of Jordan was estimated to be 6.11 million in 2010, increasing 22.80% since 2001.

Jordan estimated population

(Source: Department of Statistics, Jordan)

Jordan estimated population growth


(Source: Department of Statistics, Jordan)

The estimated female population in 2010 was 2.96 million, while the estimated male population was 3.15 million.

(Source: Department of Statistics, Jordan)

Jordan population

(Source: Department of Statistics, Jordan)

As of 2009, the total urban population in the country accounted for 83% of the total population, while rural population accounted for only 17%.

(Source: Department of Statistics, Jordan)

In 2009, life expectancy for males was 72 years and for females was 74 years.

(Source: Department of Statistics, Jordan)

Infant mortality rate

Infant  mortality rate (deaths per 1,000 births), 2009

Age group

Neonatal

mortality

Post neonatal

mortality

Infant

mortality

Child

mortality

Under-five

mortality

0-4

15

8

23

5

28

5-9

22

7

29

5

33

10-14

15

8

23

5

28

 

(Source: Department of Statistics, Jordan)

In 2008, the live births registered were 181,328, decreasing 2% since 2007.  Furthermore, deaths registered were 19,403, decreasing 4.39% since 2007.

Jordan live births and deaths registered

(Source: Department of Statistics, Jordan)

Ethnic Groups

Ethnic groups in Jordan are:

  • The Bedouins
  • The Palestinians
  • The Circassians

(Source: kinghussein.gov.jo)

Migration


Migration figures in Jordan, 2010

Estimated number of international migrants at mid-year

2,972,983

Estimated number of refugees at mid-year

2,526,834

International migrants as a percentage of the population

45.9

Refugees as a percentage of international migrants

49.2

(Source: un.org)

Human development index (HDI)

The country ranks 82nd out of 169 countries on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and basic standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

[Top] Soft Infrastructure

Education

In Jordan, education is compulsory for children till the age of fifteen.

The educational system in Jordan consists of

  • Pre- school education
  • Compulsory basic education
  • Secondary academic or vocational education
  • Secondary Education

(Source: usaid.gov)

There are about 2787 government schools, 1493 private schools, 48 community colleges, and 19 universities in the country.

(Source: kinghussein.gov.jo)

Jordan distribution of population by educational level

(Source: Department of statistics, Jordan)

Education indicators (2008-2009)

Education Indicators (2008-2009)

Basic Education Students ('000)

1,335.6

Secondary Education Students ('000)

194.1

Basic Education Teachers ('000)

71.2

Secondary Education Teachers ('000)

17.5

Average No of Students in Class

26.8

Students/ Teacher (Basic Education)

18.7

Students/ Teacher (Secondary Education)

11.1

(Source: Department of statistics, Jordan)

Literacy rate

As of 2007, the literacy rate of people aged 15 and above was recorded at 92%.

(Source: World Bank)

Healthcare

Health Indicators, 2007-2009

 

2009

2008

2007

No. of Hospitals

104

103

103

No. of Beds

11,351

11,200

11,029

Population/Bed

527

522

519

No. of Pharmacies

1,949

1,883

1,806

Population/Pharmacy

3,068

3,107

3,169

Physicians Per ('0000)

34.7

35.1

34.0


(Source: Department of statistics, Jordan)

[Top] Hard Infrastructure

Roads

In 2007, the road network was 8,002 Km long.

Roads network (2005-2007)

 

Rural Road (Km)

Side Road (Km)

Main Road (Km)

2007

2,435

2,127

3,440

2006

3,395

2,112

3,187

2005

3,387

2,101

3,108


(Source: Ministry of transport, Jordan)

Ports

There are three ports in Jordan namely: Mo’ta Berth, Moshterak Berth and Port of Aqaba.

Jordan number of anchored ships at Aqaba Port

(Source: Department of statistics, Jordan)

Airports

There are three airports in the country, two of which are situated in Amman.

Town

Airport name

Runway length (ft.)

Amman

Marka Intl

10,700

Amman

Queen Alia Intl

12,000

Aqaba

Aqaba Intl

9,800

(Source: aircraft-charter-world)

Telecommunications

Communication Indicators

 

2009

2008

2007

Number of Telephone subscribers ('000)

501

519

559

Number of Mobile Subscribers ('000)

6,104

5,300

4,771

Number of Postal services Offices

354

353

356

Number of Post Boxes ('000)

156.5

157.1

117.8

(Source: Department of statistics, Jordan)

Internet access

As of June 2010, there are 1,741,900 Internet users in the country. Furthermore, the internet penetration rate increased from 2.4% in 2000 to 27.2% in 2010.

(Source: internetworldstats)

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