MENA-Forum published on 22 May 2015 an article on Qatar National Bank Group report on Jordan Economic Insight 2015 in relation to how the Jordanian economy continues to recover, despite a difficult regional context and a weak global economy.
Jordan Vision 2025
The plan, labelled “2025 vision”, based on two scenarios; a conservative 4.8% in 10 years, and / or an ambitious 7.5% by 2025. The main objectives of the blueprint are to address the challenges of rising living costs, poverty and unemployment and to lead the community to a more prosperous level in the coming 10 years. The authorities noted that the vision is based on 20 developmental priorities derived from four axes representing the key routes of the plan such as :
- Participation of highly motivated citizens in the development process,
- A secure and stable society,
- A dynamic private sector that is able to compete internationally, and
- A competent and effective government sector.
The final draft of the new economic plan, targeted for the end of August, will set a new path for socio-economic development in the country, as part of what is known now as Jordan’s Vision 2025. It is aimed at revitalizing its economy by targeting poverty, unemployment and the fiscal deficit, and boosting annual GDP growth.
Jordan 2025 will be implemented through three consecutive executive development programmes (EDPs) and each one will be evaluated at the end of its three-year run so as to feedback all relevant data meant for improving the following stages.
This plan envisions Jordan as an economic gateway to regional markets that is also taking advantage of free trade agreements Jordan has signed with several countries in order to achieve an export-oriented economy.
The formula used in the blueprint, relies on the concept of economic clusters based on the cooperative advantages of Jordan, adding that the vision aims at achieving relatively high economic growth rates and a tangible drop in unemployment and public debt, which planners expect to decline to 47% of the gross domestic product (GDP) in 2025.
The plan outline is as follows
|GDP growth rate||3.1%||4.9%||6.9%||7.5%|
|Percentage of local revenues coverage of current spending|
|Budget deficit ratio to GDP including grants|
|Budget deficit ratio to GDP excluding grants|
|Public Debt ratio to GDP|
|Government ranking in Global Competitiveness Index (GCI)|
|Agriculture sector contribution to GDP|
|Domestic share in energy mix|
|Renewable energy share in energy mix|
|Nuclear energy share in energy mix|
|Construction sector contribution to GDP|
|Industrial sector contribution to GDP|
|Services sector contribution to GDP|
|Investment volume and growth rate|
|Business Environment- Ranking in GCI|
|Judicial independence ranking|
|Extreme poverty rate|
|12.2%||11.5%||10.8%||8 – 9.2%|
|Percentage of employees in public sector|
|Women participation in labour market|
– See more in : Jordan Times
It is to be noted that the plan hinges on 3 main elements, i.e. :
- GDP boost
At the end of July and thanks to lower oil prices, the current account deficit is narrowing and despite some remaining significant challenges, the new economic blueprint will help address issues. The IMF advised that fiscal consolidation could help stabilise public debt this year.
“There is also a need to move on structural reforms geared to job creation, and focused on labour market reform as well as improvements in the business climate and the quality of public institutions,” said the IMF in its review of the country.
“Vision 2025 is an opportunity to address these challenges, and an important step will be to anchor it in a medium-term macro-fiscal framework.”
- Targets higher trade
Under the plan’s, the authorities aim to progressively boost annual GDP growth from 3.1% in 2014 to 4.9% three years later, 6.9% by 2021 and 7.5% by 2025, attempting at the same time to reduce the budget deficit to zero by 2025, from a deficit of 3.5% of GDP after grants in 2014, and thereby gradually reduce overall debt from 82.3% of GDP in 2014 to 47.4% by 2025.
- Cluster approach to industrial development
Jordan adopts an approach that is essentially cluster-focused on those existing and high performing industries, and develop all related and / or supportive complementary industries, notably a) construction and engineering, b) transport and logistics, c) tourism and events, d) health care, e) life sciences, f) digital and business services, g) educational services and h) financial services.