Jordan’s GDP growth ticks up to 2.9% y/y in Q4, averages 2.8% in 2013

By bne IntelliNews April 1, 2014

Jordan's real GDP growth edged up to 2.9% y/y in the fourth quarter of 2013 from 2.8% y/y in Q3 on positive output in the country’s main economic sectors that offset falling contribution from the mining and agriculture sectors, data from the stats office DoS showed. In 2013, the GDP growth also ticked up to 2.8% from 2.7% the year before, on rising government capital spending, higher domestic consumption and a recovery in exports. The full-year reading, however, undershoots the IMF’s optimistic forecast of 3.3% GDP growth but is in line with the EBRD’s 2.9% projection. It is worth noting that spillovers from the Syrian turmoil and the related inflow of refugees into Jordan have weighed on Jordan’s GDP growth in 2013.

The construction sector was again the best performer in Q4, growing 9.4% y/y and speeding up from 7.9% y/y in Q3. Strong local, expat and Arab demand for housing remain the main growth engine. The government services sector was the second best performer in Q4 2013 (up 5.4% y/y) on rising capital spending. The prior-year low base also played a role though. The utilities sector grew 4.5% y/y in Q4 while the financial services, insurance and real estate sector expanded 4.3% y/y, up from 3.7% y/y in Q3.

The transport and logistics sector expanded 3.7% y/y (down from 5.1% in Q3) due to sustained activity though Iraq and the GCC.

The agriculture output shrank 13.3% y/y in Q4, swinging from a 4.5% growth the previous quarter on unfavourable weather factors. The mining and quarrying output dropped 12.2% y/y in Q4 on lower external demand and commodity prices.

Related Articles

Ankara and Tehran join wave of anger directed at Trump’s recognition of Jerusalem as Israel’s capital

US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more

Islamic State is finished declares Iran's President Rouhani

Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more

Turkey the loser as Baghdad rewards Iran with control of Kurdish oil exports

Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more