Jordan flag Jordan: Economic and Political Overview

Foreign trade figures of Jordan

Foreign Trade in Figures

Jordan is very open to international trade, so much so that there is a dependence on foreign capital; however, its relative share of GDP has diminished considerably after 2014 and was standing in 2021 at 81% (World Bank, 2023). Exports are spearheaded by the textile industry, followed by the chemical and mining sectors (fertiliser, medicine, potash and phosphate). Jordan mainly imports machinery and transport equipment, gas, crude and petroleum products, food, manufactured chemicals and electrical machines.

The United States was by far the main destination for Jordanian exports (22.1% of all exports), followed by India (10.9%), Saudi Arabia (10.5%), Iraq (8.4%) and the United Arab Emirates (4.4%). China (15.9%) and Saudi Arabia (12.3%) were the main supplier of goods in Jordan, remaining ahead of the United States (8.3%), Germany (4.3%) and the UEA (3.7%). Jordan is a member of the WTO and signed a free-trade agreement (FTA) with the U.S in December 2001, allowing the removal of customs duties on the majority of goods and services since 2010 when it was fully implemented. Jordan has also signed an Agreement of Association with the EU. In 2016, the EU announced that it would facilitate the entry of Jordanian exports in order to support the economy and integration of Syrian refugees. Jordan cancelled its free-trade agreement with Turkey at the end of 2018, citing its feasibility and negative impact on local manufacturing. This agreement was replaced by another free-trade deal at the end of 2019. In addition to the United States, Jordan is also party to bilateral trade agreements with Canada and Singapore and is a signatory to several regional trade agreements including the European Free Trade Association (Norway, Switzerland, Liechtenstein), Greater Arab Free Trade Agreement (GAFTA), and Aghadir Agreement (Egypt, Morocco, Tunisia) which is connected to the Association Agreement (EU).

On 6 October 2022, Jordanian Minister of Planning and International Cooperation Nasser Shraideh announced to sign an agreement with the European Investment Bank (EIB) regarding food security in Jordan worth €130 million (Jodan News, 10/06/22).

Jordan's trade balance is structurally in deficit, mainly because of the country's reliance on hydrocarbon imports. The exports of goods amounts to USD 9.35 billion and the imports of goods to USD 21.61 billion in 2021. The Kingdom's trade deficit increased during 2021 by 23.7% to reach 9.87 billion USD, compared with the same period in 2020, where it stood at 7.98 billion USD (Jordanian Department of Statistics, January 2023). The volume of total exports in 2021 was 13.76 billion USD, compared with 10.26 billion in 2020. (Jordanian Department of Statistics 2022).

 
Foreign Trade Values 20182019202020212022
Imports of Goods (million USD) 20,31019,17017,23321,54227,290
Exports of Goods (million USD) 7,7508,3177,9439,35812,380
Imports of Services (million USD) 4,8634,9113,0954,1625,690
Exports of Services (million USD) 7,3427,8532,5014,5077,951

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20182019202020212022
Foreign Trade (in % of GDP) 88.085.8n/an/an/a
Trade Balance (million USD) -10,302-8,735-7,386-9,810-11,895
Trade Balance (Including Service) (million USD) -7,823-5,793-7,980-9,452-9,619
Imports of Goods and Services (in % of GDP) 52.849.2n/an/an/a
Exports of Goods and Services (in % of GDP) 35.136.7n/an/an/a

Source: World Bank ; Latest available data

Foreign Trade Forecasts 20232024 (e)2025 (e)2026 (e)2027 (e)
Volume of exports of goods and services (Annual % change) 2.32.33.53.63.4
Volume of imports of goods and services (Annual % change) 3.02.02.62.93.1

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

 
International Economic Cooperation
The Jordanian economy is very open. The country is part of the Greater Arab Free Trade Area(GAFTA), a pact of the Arab League entered into force in January 2005 which aims to form an Arabic free trade area. It has also signed bilateral free trade agreements with most of the countries of the Arab League. Jordan has also signed an agreement with the European Free Trade Association (EFTA), the United States and Singapore. Jordan has signed the Euro-Mediterranean Association Agreement which provides for a free trade area between the European Union and the other signatory countries. Finally, Jordan is a member of the Agadir agreement which provides for a system of free trade between Jordan, Tunisia and Egypt. Jordan also signed a Free Trade Agreement with Canada.
 

Main Partner Countries

Main Customers
(% of Exports)
2022
United States 20.0%
India 14.6%
Saudi Arabia 9.9%
Iraq 7.5%
Indonesia 2.7%
See More Countries 45.4%
Main Suppliers
(% of Imports)
2022
China 15.3%
Saudi Arabia 14.9%
United Arab Emirates 7.8%
United States 5.5%
India 5.1%
See More Countries 51.5%

Source: Comtrade, 2023. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 
 

Main Products

12.4 bn USD of products exported in 2022
Special garments for professional, sporting or...Special garments for professional, sporting or other purposes, n.e.s., knitted or crocheted 17.1%
Mineral or chemical potassic fertilisers (excl....Mineral or chemical potassic fertilisers (excl. those in tablets or similar forms, or in packages with a gross weight of <= 10 kg) 12.0%
Natural calcium phosphates and natural aluminium...Natural calcium phosphates and natural aluminium calcium phosphates, natural and phosphatic chalk 8.6%
Diphosphorus pentaoxide; phosphoric acid;...Diphosphorus pentaoxide; phosphoric acid; polyphosphoric acids, whether or not chemically defined 5.4%
Mineral or chemical nitrogenous fertilisers (excl....Mineral or chemical nitrogenous fertilisers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 5.1%
See More Products 51.8%
27.3 bn USD of products imported in 2022
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 8.3%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 7.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 4.8%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.1%
Fabrics, knitted or crocheted, of a width of > 30...Fabrics, knitted or crocheted, of a width of > 30 cm (excl. warp knit fabrics "incl. those made on galloon knitting machines", those containing by weight >= 5% of elastomeric yarn or rubber thread, and pile fabrics, incl. "long pile", looped pile fabrics, labels, badges and similar articles, and knitted or crocheted fabrics, impregnated, coated, covered or laminated) 2.4%
See More Products 72.8%

Source: Comtrade, 2023. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 
 

To go further, check out our service Import Export Flows.

 

Main Services

8.0 bn USD of services exported in 2022
72.93%
19.21%
1.94%
1.54%
1.48%
1.37%
0.86%
0.32%
0.20%
0.16%
5.7 bn USD of services imported in 2022
56.75%
25.85%
11.13%
2.03%
1.46%
1.06%
0.62%
0.58%
0.41%
0.10%

Source: United Nations Statistics Division, 2023. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

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Latest Update: December 2023

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