Niall Cummins

Econ 1600
Dennis Watson
12/10/16

Jordan-Reflective Summary

Jordan, despite its geographical location, is still emerging as a small part of

the global economy. It is in the middle of a very dangerous place in the world, where
governments are falling, and war is rampant. It seems to be one of the few Middle
Eastern countries that have not been torn to shreds by the wars currently taking
place in that area. That being said, Jordan is still suffering.
Jordan has very few natural resources. Very little oil is produced in this Middle
Eastern country, meaning the country cant be supported by oil, as many others
are. Its ability to trade with Iraq and Syria, two of its closest neighbors, has
collapsed in the past 15 years. Jordans public expenses have recently grown
exponentially, due to the fact that it is now housing 2 million Syrian refugees. Public
debt has grown in recent years, peaking at 90% of GDP in 2016. Jordans economic
growth in previous decades was through the roof. Unfortunately, due to the situation
of surrounding countries, their GDP growth has slowed to about 2.5%. This is nearly
the same as the U.S. and Australias growth rates.
Jordan exported a total of $7.8 billion dollars worth of goods in 2015. Its
imports were around $18 billion. The total GDP of Jordan in 2015 was around $83
billion. This may sound like a large number to you and me, but for comparison
purposes, American company, Apple Inc., is worth more than five times that
amount.
Jordan has a relatively small population of 8.2 million people. Their labor force
totals just over 2 million. The World Fact Book states that their unemployment rate
is 14.2%, but unofficial reports say that it could be closer to double that number.
The Freedom Index gives Jordan a score of 68.3, a much better score than
that of Chinas 52. Their fertility rate is 3.18, nearly double that of most established
countries. This could prove to be good, as it ensures that the next generations labor
force will be much bigger, which will grow the economy. Jordans education program
totals 6.8% of GDP, which is considerably higher than the United States, 5.2%.
Jordan needs to spend more money on their education system if they want to
become an emerging market because they are having kids at double the rate that
we are. More kids equals more education expenses.
In my macroeconomics class we learned that for emerging economies, raising
the amount of money your country spends on public education proves to be a very
effective method for long term GDP growth. Jordan is spending a considerable

amount of money on education which leads me to believe, ceteris paribus, Jordans

GDP growth rate is sure to increase in this upcoming generation.
Their biggest exports as of right now are clothing, pharmaceuticals, and salt
in the form of potash. 17.6% of exports go to the United States, making their
economy heavily dependent on the U.S. 18.4% of their exports go to Iraq, a number
which has been steadily decreasing. Despite being located in the Middle East, their
main import is crude oil. This is followed by textiles, fabrics, machinery, and
manufactured goods. 18.5% of their imports come from Saudi Arabia.
Jordan is a geographically small country with a small population and very
little resources. With the growing impact of automation, their main export of
clothing is sure to suffer. Finding ways and products to trade with countries other
than their neighbors may be hard for them, and it will definitely be an uphill battle if
they, as a country, are to succeed. It could be months, or more likely decades
before the wars in the Middle East finally begin to subside, but I feel that as soon as
they do, Jordan is sure to start growing again. Their future growth is almost certain,
but Jordans future success remains uncertain.
Citations

"Human Development Reports." Human Development Index (HDI) | Human

Development Reports. N.p., n.d. Web. 10 Nov. 2016.
"World Fact Book." Central Intelligence Agency. Central Intelligence Agency, n.d. Web.
10 Nov. 2016.
"2016 Index of Economic Freedom." Index of Economic Freedom: Promoting Economic
Opportunity and Prosperity by Country. N.p., n.d. Web. 10 Nov. 2016.