Jordan - Market ChallengesJordan - Market Challenges
Regional strife has limited Jordan’s ability to trade with its neighbors. The closing of Jordan’s main border crossings with Iraq and Syria in 2015 due to regional unrest has added additional stress on Jordan’s exports sector and logistics infrastructure. The Treibl border crossing between Jordan and Iraq reopened to limited trade in late 2017. The Nasib border crossing between Jordan and Syria reopened in 2018 to limited vehicle and person crossing.
Jordan’s economy continues to grow at about 2% per year; trade and tourism have been hurt by regional turmoil but rebounded slightly in 2017. Jordan relies upon imports for over 90 percent of its energy needs, making the country vulnerable to commodity price fluctuations. Foreign assistance contributes significantly to Jordan’s economy.
Unemployment (18% for Jordanian nationals as of Jan. 2017), water scarcity, and high rates of poverty remain critical issues in Jordan. The budget deficit resonates across all sectors, affecting defense and security, and undermining economic growth.
King Abdullah II has championed government efforts to implement economic and political reforms, but implementation has been gradual.
Population growth rate continue to climb, with 70 percent of the population under 30, and 36 percent under 15.