This profile takes stock of the trade performance and structure of Jordan since 1995. In addition to aggregate trends in trade and foreign direct investment, a broad range of trade indicators are calculated specially for this profile using highly detailed product level data, making it a novel set of trade indicators for Jordan and the Arab region.
The analysis reveals that Jordan’s performance in merchandise and services trade and attracting foreign direct investment has been mixed over the past two decades. Jordan’s merchandise exports and imports have been losing their relative importance since the onset of the global financial crisis, offsetting the prior gains. Jordan’s trade in services has declined significantly over the last two decades. Jordan has been rather successful in attracting FDI, with very high levels of FDI inflows in relation to GDP. Traditional destinations for Jordan’s exports have mainly been PAFTA countries but the emergence of NAFTA is notable. EU and NAFTA countries hold relatively favorable prospects for the exports of Jordan, the diversification and sophistication of which has largely stalled.