Jordan’s trade deficit up 31.7%

Department of Statistics
(File photo: Jordan News)
AMMAN — Jordan recorded a 31.7 percent increase in its trade deficit of trade in the first five months of the year, according to a Department of Statistics (DoS) monthly report.اضافة اعلان

DoS said the deficit, which is the difference between exports and imports, amounted to JD4.1 billion, a 31.7 percent rise over the corresponding period in 2021.

The report showed that total exports stood at JD3.4 billion between January and May 2022, which is 41.2 percent increase from the same period in 2021.

Imports were valued at JD7.5 billion in the first five months of 2022, a 35.8 percent increase over the same period in 2021.

Economist Raad Al-Tal explained that “if exports exceeded imports, we would have a healthy economy.”

“The trade balance shows the country’s ability to produce,” he told Jordan News.

Tal pointed out that Jordan imports between 80 to 85 percent of its market needs, which “explains the rise in prices, because the commodity prices increased in the manufacturing countries”.

“The increase in the deficit of trade balance further burdens the external debt, leading to an increase in the state’s budget deficit”, and will lead to a further increase in debts, Tal said.

“The main reason for the deficit is the lack of produced goods in Jordan, which include goods that can be produced domestically, using our resources,” he said. “This leads us to import our needs instead.”

Another economist, Salameh Al-Daraawi, linked the increased deficit to the economic policies, which the government is adopting and they can be interpreted as obstructing the business of the private sector.

“Therefore, there is a need to review these policies and plan to increases the national exports,” he told Jordan News.

“Increases in exports leads to increase in Central bank reserves of hard currency,” he said. “An increase of national exports means more job opportunities because facilities which would export more products will need to hire more people to do the job.”

He said every $1 billion in exports will provide at least 80,000 jobs.

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