Jordan's Economic Resilience: GDP Growth Holds at 2.8% as Producer Price Pressures Ease

Amman | EcoPulse24

Recent economic indicators from Jordan show ongoing stability and recovery in the national economy during Q3 2025, as GDP growth held at 2.8% year-on-year. This marks the highest level of expansion since Q3 2023, reflecting notable resilience amid ongoing regional geopolitical pressures.

Strategic Growth Drivers:

The economic momentum was fueled by robust output in key productive sectors. Mining and quarrying grew by 7.4%, followed by agriculture and fishing at 6.3%. Manufacturing was the largest contributor, adding 0.89 percentage points to GDP with sectoral growth of 5.1%. Electricity supply and transport also recorded growth of 4.6% and 4.0%, respectively.

Production Costs and Declining Contraction:

Alongside GDP growth, November data showed a marked slowdown in the contraction of producer prices, reaching just 0.69% - the lowest since July. The monthly index reversed to a 0.57% increase in November, offsetting earlier declines, largely driven by a 7.16% jump in mining sector costs, enhancing its value-added contribution to GDP.

Statistical Methodology Update:

Jordan's Department of Statistics adopted new international standards (ISIC), expanding sector classification from 14 to 20 sectors for more accurate monitoring and analysis of economic performance and sectoral contributions.

EcoPulse24 Analysis:

The combination of stable GDP growth and easing producer price contraction marks a phase of 'stable growth' for Jordan's economy despite challenges. The prominence of mining and manufacturing highlights the success of a value-added sector strategy. As producer price changes turn positive, operating margins for factories are expected to improve gradually, supporting sustained growth in upcoming quarters.

FAQ:

- What is Jordan's expected GDP for 2025? With current growth at 2.8%, GDP is projected to approach $50 billion by year-end, driven by industrial and mining sectors.
- How has the Jordanian dinar performed? The dinar remains stable at 0.709 per US dollar, supported by strong central bank reserves, providing a secure environment for growth and investment.
- How active is the Amman Stock Exchange in 2025? The exchange saw over 2.1 billion dinars in trades, led by the financial sector, followed by industry, which benefited from growth in manufacturing and mining.