Key growth drivers of Jordan’s economy – First quarter 2025

The government’s Q1 2025 report on the Economic Modernization Vision (2023–2025) shows clear progress in four main areas that support growth: investment, quality of life, making Jordan a global destination, and sustainable resources. These areas have seen real improvements in laws, infrastructure, and easier procedures. This is supported by data and completed projects.

The government is now clearly working within the framework of the Economic Modernization Vision, which is Jordan’s roadmap for achieving sustainable growth by focusing on key parts of the economy. In 2024, macroeconomic indicators showed stability. The economy grew by 2.5 per cent and inflation stayed low at 2.21 per cent. GDP per person reached 3,228 dinars. The budget deficit after aid remained low at 0.7 per cent of GDP. Foreign currency reserves were $22 billion in March 2025, enough to cover 8.5 months of imports. Foreign direct investment reached 1,122 million dinars. Imports totaled 1,623 million dinars, while exports were 703 million dinars.

Attracting investment is a key government goal. More than 5,200 companies have registered on the investment services platform since 2023. This shows that the business environment is improving. The government is working to bring in more foreign investment and improve public services using tools like Salesforce. This helps attract investors in key sectors such as mining, chemicals, and logistics.

Industry is also an important growth driver. It fits under the “high-value industries” part of the modernization plan. In 2024, manufacturing exports reached 6.827 billion dinars. The sector adds strong value to the economy and continues to grow. The government has given financial incentives to 94 industrial companies and launched support programs for small and medium industries. This helps local companies grow and compete globally.

Agriculture and food security are also key for Jordan’s economy. Despite tough natural conditions, the country maintains strong reserves: 10.4 months of wheat and 8.4 months of barley. This supports stable food security. The sector is improving with projects like the National Seed Bank and planting one million trees. Loans worth 1.3 million dinars were given for land use and farming. Another 6.9 million dinars went to support livestock, helping meet local food needs.

Even with regional challenges, the Economic Modernization Vision is Jordan’s roadmap for balancing growth and sustainability. The steps taken in investment, industry, and agriculture are moving in the right direction. With strong strategies in place, these efforts are expected to bring steady improvements to Jordan’s economy in both the short and long term.

Raad Mahmoud Al-Tal is head of Economics Department – University of Jordan, r.tal@ju.edu.jo