Jordan's economy demonstrated resilience in 2023 and early 2024, as highlighted in a World Bank report released today. The report notes that real GDP increased to 2.7 percent in 2023, a modest rise from the previous year. This growth was achieved despite a challenging regional environment and was driven by diverse economic sectors, including manufacturing, agriculture, services, restaurants, and hotels.
The World Bank's Jordan Economic Monitor Report provides an overview of recent economic performance and future projections for the country. It indicates that inflation in Jordan has significantly decreased to 2.1 percent in 2023 and is expected to remain stable throughout 2024.
Unemployment rates have slightly declined for the second consecutive year, reaching 22.0 percent and further decreasing to 21.4 percent in the first quarter of 2024. However, labor force participation rates have remained largely stagnant, particularly among women and youth. A positive development was observed with the female participation rate rising to 15.5 percent in the first quarter of 2024—the highest since the third quarter of 2018.
Jordan continues its fiscal consolidation efforts, reducing its deficit to 5.1 percent of GDP in 2023 through lower expenditures that outweighed declines in tax revenues and foreign grants. The current account deficit also narrowed due to a reduced trade deficit and record-high travel receipts amounting to 14.5 percent of GDP in 2023.
The report examines the impact of Middle East conflicts on Jordan's economy, noting that effects have been relatively contained so far. Trade disruptions at the Red Sea have affected imports and exports via Aqaba port, while tourism has seen a sharp decline since late 2023.
Growth is projected to slow slightly to 2.4 percent in 2024 due primarily to conflict-related impacts on tourism, trade, transportation, and construction.