Jordan’s economic growth slowed to 2.6 percent in the third quarter compared with the same period last year when it achieved 3.5 percent, a Jordanian Department of Statistics figures showed. The figures show that the growth of gross domestic product (GDP) for the first nine months of 2011 was 2.4 percent.
The third quarter achieved a higher growth rate than the first and second quarters when the economy expanded by 2.2 percent and 2.4 percent respectively. Commenting on the figures, Jawad Anani, former prime minister, former royal court chief and foreign minister, described the growth rate as “very modest and not encouraging”.
Impact
Anani told Gulf News: “This slow pace of growth is attributed to domestic and regional issues, particularly the so-called Arab Spring and its repercussions on the Jordanian economic and tourism sectors.” Anani expected that the fourth quarter would see slower economic activity. “It will be a big surprise if economic growth rate in the fourth quarter soars,” he said. He projected full-year growth to remain under 2.5 percent.
The third quarter was supposed to be the most active period for the economy this year because of Ramadan and Eid Al Fitr celebrations when consumption should have increased, he said, noting that the peak tourism season and the return of expatriates were also supposed to push growth rates higher.
Financial allocations
Mohammad Edainat, former minister of state for prime ministry affairs, told Gulf News that government agencies had spent their financial allocations in the fourth quarter, adding that turmoil in the Middle East had harmed Jordan’s economy. “The 2.6 percent growth rate is fair and good in light of regional unrest and domestic conditions,” said Edainat. He expects growth to fall further in the fourth quarter.
The Department of Statistics figures showed that the mining sector was a key economic sector, achieving the highest growth rate of 13.4 percent in the third quarter over the same period last year. Moreover, growth in the agricultural sector hit 5.4 percent in the third quarter, followed by the manufacturing sector with 4.3 percent and public services by 3.7 percent, the figures revealed.
