Even though foreign direct investment (FDI) inflows are poised to rise sharply in the second half of 2012, the Jordanian government is treading cautiously against the background of a still fragile global economy and daily concerns over the level of regional instability on its own doorstep.
With Jordan’s economic outlook at best mixed for the time being, the kingdom’s government is exploring tax increases as one way to keep the budget solvent. However, officials are nevertheless keen to ensure these tax hikes do not hinder common daily economic activity for most of the population, especially now that Ramadan has begun.
Although the IMF argued in a recent study that economic growth in Jordan will likely remain “subdued” over the coming year, it also made note of a few sectors supporting economic expansion. Banking in particular was highlighted, with the IMF stating that the banking system remains one of the economy’s strongest industries.
Jordan’s mining sector has a promising outlook for the coming year, and not just in the sector’s traditional segments such as phosphate and potash, but in newer areas of extraction as well. As profits for established mining companies grow, so do opportunities in shale oil and uranium extraction.
A regional cable network (RCN) earmarked for completion later this year, together with a new, national five-year strategy for the information and communications technology (ICT) sector, will act as the key drivers in Jordan’s efforts to reinvigorate growth levels in the industry.
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