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Jordan is a small Arab country with inadequate supplies of water and other natural resources such as oil. Debt, poverty, and unemployment are fundamental problems, but King ABDALLAH, since assuming the throne in 1999, has undertaken some broad economic reforms in a long-term effort to improve living standards. 'Amman in the past three years has worked closely with the IMF, practiced careful monetary policy, and made substantial headway with privatization. The government also has liberalized the trade regime sufficiently to secure Jordan's membership in the WTrO (2000), a free trade accord with the US (2000), and an association agreement with the EU (2001). These measures have helped improve productivity and have put Jordan on the foreign investment map. The US-led war in Iraq in 2003 dealt an economic blow to Jordan, which was dependent on Iraq for discounted oil (worth $300-$600 million a year). Several Gulf nations have provided temporary aid to compensate for the loss of this oil; when this foreign aid expires, the Jordanian government has pledged to raise retail petroleum product prices and the sales tax base. Other ongoing challenges include fiscal adjustment to reduce the budget deficit, broader investment incentives to promote job-creating ventures, and the encouragement of tourism.
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Phosphate mining, petroleum refining, cement, potash, light manufacturing, tourism.
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Wheat, barley, citrus, tomatoes, melons, olives; sheep, goats, poultry.
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