Jordan’s GDP growth quickens to 2.6% y/y in Q1 2013

By bne IntelliNews July 1, 2013

Jordan's real GDP growth accelerated to 2.6% y/y in Q1 from 2.2% in Q4 2012 on higher construction, social services, trade and real estate output which offset shrinking agro and mining contributions, data from the stats office DoS showed. Jordan’s GDP growth will increase to 3.3% in 2013 from 2.8% a year earlier, on rising government capital spending, higher domestic consumption and a recovery in exports, the IMF said in its latest World Economic Outlook published in April.

In Q1, the construction sector was the best performer rising 7.8% y/y compared with a 4.1% contraction the quarter before amid strong local, expat and Arab demand for housing. The social services sector followed at 7.7% growth given strong public spending.

Trade, hotel and restaurants output increased 5.6% y/y over the period given strong local and tourism demand. The utility sector shrank 6.0% y/y in Q1 on favourable seasonal factors and the resumption of Egyptian gas supplies. The transport and logistics sector increased 3.5% over the period due to strong activity though Iraq and the GCC. The financial sector expanded 3.8% y/y in Q1. The agro sector remained in the red shrinking 8.3% y/y due to the weak harvest and unfavourable seasonal factors. Weaker regional demand and basic commodity prices, mainly of potassium and phosphates, led to a 18.3% drop in mining and quarrying.

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