Jordan’s economy showed improvement in the first quarter of 2025, despite ongoing challenges in the region. According to the Department of Statistics, the economy grew by 2.7% compared to 2.2% in the same period last year. This shows a slow but steady return to the growth targets set in Jordan’s Economic Modernization Vision.

 

The growth was driven by strong performance in several key sectors. Agriculture grew the most, with an 8.1% increase, making a clear contribution to the overall economy. This likely reflects better productivity and wider activity in farming. The electricity and water sector grew by 5.8%, and the manufacturing sector grew by 5.1%, helping boost industrial production. Social and personal services, such as education and healthcare, also grew by 3.4%, supported by stronger demand inside the country.

 

Trade figures gave mixed results. Exports rose by 10.6% in the first four months of the year, reaching 3.038 billion dinars. This shows that Jordanian products are doing better in international markets. However, imports rose even faster—by 12.7%—to 6.554 billion dinars. This caused the trade deficit to widen by 14.5%. The share of imports covered by exports dropped from 47% last year to 46% this year, and fell to just 39% in April. This growing gap adds pressure on Jordan’s foreign currency reserves.

 

Foreign investment gave more positive news. Direct foreign investment increased by 14.3% in the first quarter, reaching 240 million dinars. This is a sign that investors have more confidence in Jordan’s economy, even with instability in the region.

 

Unemployment remains a major concern. The overall jobless rate was 21.3% in the first quarter, just slightly lower than 21.4% a year earlier. The unemployment rate for men actually increased to 18.6%. However, looking over the past three years, the unemployment rate has dropped by 1.5 percentage points, showing some slow improvement—possibly thanks to programs aimed at training workers and creating jobs.

 

In summary, the first quarter of 2025 brought moderate and steady economic growth in Jordan. Stronger performance in sectors like agriculture and manufacturing, along with more foreign investment, are good signs. But high unemployment and a growing trade gap are still major challenges. More focus is needed on boosting exports and creating jobs in productive sectors to keep the economy moving forward.

 

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