The Report: Jordan 2015

The Report: Jordan 2015

Jordan’s stable political environment, as well as the robust growth projections for its economy, should ensure near term investment inflows continue to fuel growth across the board; however, regional instability has been having a negative impact on the country’s tourism sector and rising refugee numbers are putting increased pressure on state services.

Jordan’s GDP is forecast to grow by 2.5% in 2015, and this is a positive indicator moving forward as the government aims to attract billions in inward investment as part of its current 10-year economic development strategy. Industry and mining continue to form central pillars of the country’s economy with the large mining sector – particularly of potash and phosphate – helping to fuel a growing chemicals sector in the kingdom. Furthermore, the building boom across the GCC continues to present attractive export markets for Jordan’s building materials sector. The fall in global oil prices has also benefitted benefited a range of sectors, and indeed the country as a whole, with energy bills and the trade deficit both improving as a result. However the kingdom has recognised the need to continue diversifying its energy supplies, with the National Energy Plan providing the blueprint for energy diversification moving forward. This includes meeting 15% of future demand via renewable energy sources by 2020. Meanwhile financial services continue to fuel growth in the kingdom and in 2014 they contributed 13.9% to the country’s GDP. 

 

OBG & Jordan