Jordan

Ongoing energy concerns continue to plague Jordanian manufacturers despite an overall resilient performance from the sector in 2012. As the country grapples with slow economic growth, subdued international investment and a mounting public budget deficit, industrialists are working to combat a new wave of electricity tariffs that have already contributed to a rise in production costs.

Uncertainty over the economy’s medium-term outlook, combined with concerns over regional instability, are likely to result in a subdued 2013 for Jordanian retailers, with many indicators pointing to conservative spending by consumers through the year.

The government is working hard to keep telecoms investment from leaving the country and expand the sector’s role in domestic employment, particularly as the short-term economic outlook looks set to remain strained. As a result the Kingdom is considering the possibility of allowing a new provider to enter the mobile telephony segment.

Domestic and external pressures have made it a challenging year for the Jordanian economy, with most indicators pointing to 2013 being much the same, as the state seeks to curb spending, promote growth and maintain calm.

It has been an uneven year for Jordan’s tourism industry, with rising earnings yet declining visitor numbers. Both are reflections of the kingdom’s growing market, but also of the hovering uncertainty in the region and the impact it is having on visitor confidence.

Egypt’s recent decision to halt gas supplies to Jordan and the kingdom’s subsequent decision to lift fuel subsidies has placed the country’s already difficult energy situation under an added level of stress. However, the decisions also highlight the need for Jordan to create its own alternative forms of energy import and production, a process that is already under way.