Raad Mahmoud Al-Tal

Despite fast-changing regional problems, the Jordanian economy has shown a strong ability to handle external shocks and keep growing positively. This result did not happen by chance but comes from a mix of monetary stability and careful economic and fiscal policies. In this situation, GDP grew by 2.8% in the second quarter of 2025, exceeding expectations, showing the economy’s flexibility in a difficult regional environment.

Looking at the structure of economic growth gives a clearer picture. The most important thing is that the manufacturing sector and the financial, insurance, and real estate services sector have almost the same contribution. Manufacturing contributes 18.2% and services 18.3%. This balance is not small; it shows that the Jordanian economy is slowly moving toward a better balance between production and service sectors, which is necessary for lasting growth.

Manufacturing not only kept its big role but also grew strongly by 5%, making it the second fastest-growing sector. This shows that production capacities are expanding and the economy is relying more on local production instead of imports. This change has two effects: it makes Jordanian exports more competitive and creates more high-value jobs.

The agricultural sector also grew strongly this year, with 8.6% growth. Its contribution is still small, about 4.3% of GDP, but growing agriculture is very important because it can improve food security and create thousands of jobs in rural areas. At the same time, transport, storage, and communications grew steadily, contributing about 9% to GDP and growing 4%. This sector can support future economic changes, especially with more trade, logistics, and digital services.

Growth was not only domestic but also supported by external factors. National exports grew 8.5%, showing Jordanian products can compete in tough markets. Tourism also played a key role, with tourism income reaching $5.3 billion, helped by 14.9% more visitors. These inflows raised foreign reserves to nearly $23 billion, enough to keep the dinar stable, reduce inflation pressure, and protect citizens’ purchasing power.

For foreign direct investment (FDI), Jordan attracted $1,050 million in the first half of 2025, an increase of 36.4% from last year. Although the goals are higher, this is good given the hard regional conditions. Saudi Arabia provided 26% of these investments, while Europe, the Americas, and Asia shared the rest. This spread helps stability. Sector-wise, investments were mainly in finance and insurance (37.5%), real estate (11.5%), transport and storage (6.9%), manufacturing (6.7%), and mining (6.6%). This shows more opportunities to create real jobs in many productive sectors.

The key question is: when will citizens feel the benefits of this growth? The effect does not happen immediately but works through three connected ways. First is the labor market, where improvement will come only if growth doubles, especially in big sectors like industry and services, which can create many jobs. Second is keeping purchasing power, linked to stable reserves and lower inflation, affecting prices of basic goods like food and energy. Third is continuing investments in infrastructure and services, which improve life quality, from electricity and water to transport and social services. In short, current numbers show a clear start for growth, but turning them into real benefits for people takes time if the economy keeps its momentum and expands its productive base.