Amman — The improvement in Jordan’s trade balance reflects positive indicators for the performance of national exports and their ability to strengthen their presence in foreign markets, supported by a diverse productive and industrial base.
The performance gains are particularly significant given the International Monetary Fund’s description of Jordan’s trade balance as an “exception” among oil-importing economies in the region, highlighting the role of exports in supporting foreign trade and the opportunities available to further strengthen this trend in the coming period.
Jordanian foreign trade data showed an improvement in the trade balance during the first seven months of 2026, with the deficit declining by 9.6% to around JD5.8 billion, compared with approximately JD6.44 billion during the same period in 2025—a decrease of JD616 million, according to the monthly report of the Department of Statistics.
The improvement came as national exports grew by 6% to approximately JD6.46 billion, while re-exports surged by 67.2% to around JD886 million. This brought total exports to JD7.46 billion, an 11.2% increase compared with the same period last year. Imports, meanwhile, rose by 1% to JD13.294 billion.
The ratio of total exports to imports reached 56% during the first eight months of 2026, compared with 51% during the same period in 2025, representing an increase of five percentage points.
The data showed growth in national exports across several sectors, including clothing and knitted accessories, which rose by 4.6%; nitrogenous or chemical fertilizers, up 16.4%; pharmaceutical preparations, up 1.8%; and raw potash, which increased by 12.3%.
This performance is underpinned by a productive and industrial base comprising around 2,500 industrial products exported to 150 countries worldwide. Jordan’s industrial sector includes more than 18,000 establishments providing around 271,000 direct jobs.
The sector’s estimated annual production capacity stands at approximately JD18 billion, while its contribution to gross domestic product is estimated at around 24%, according to sector estimates.
These indicators are particularly significant given the IMF’s description of Jordan’s trade balance performance as an “exception” among oil-importing economies in the region. While merchandise trade balances in other economies have deteriorated, Jordan’s performance has improved, primarily driven by export growth.
Industrial Base Builds on Cumulative Strength
Fathi Al-Jaghbir, Chairman of the Amman and Jordan Chambers of Industry, said the assessment reflects the strength of Jordan’s productive base, particularly its national industry, which benefits from diversified activities and products and the ability to adapt to economic and regional changes.
This has enabled Jordan to make tangible progress in its trade performance despite limited oil resources and its reliance on imports of energy, raw materials and production inputs, along with the challenges associated with production and transportation costs and fluctuations in global markets.
Al-Jaghbir said the distinctive nature of Jordan’s experience lies in its ability to build a diversified and advanced industrial base encompassing chemicals and fertilizers, pharmaceuticals and medical supplies, food, leather and textile industries, engineering and electrical products, as well as mining and other industries.
This diversity has allowed the national economy to diversify its export revenues and strengthen its ability to access and compete in foreign markets despite surrounding challenges.
He noted that this development was reflected in the value of national exports, which increased from around JD3 billion in 2006 to approximately JD9.6 billion in 2025, more than tripling over that period.
He said this reflects the major expansion of Jordan’s productive and export base and the growing ability of industrial establishments to meet demand in regional and international markets.
Al-Jaghbir said the positive trend continued in 2026, with national exports rising by 4.6% during the first eight months, while industrial exports grew by 7.3% to approximately JD5.17 billion—an increase of nearly JD350 million compared with the same period last year.
He said the figures confirm the pivotal role of national industry in driving export activity.
Al-Jaghbir stressed that the most significant economic implication of this performance is the ability of national industry to generate growing export revenues, increase its contribution to covering the import bill and narrow the trade gap.
He said this reflects the development of Jordan’s productive and competitive capabilities and underscores the importance of industry as a key pillar for economic stability and sustainable growth.
He explained that the trade balance is also affected by changes in imports and global energy and commodity prices. However, growth in industrial exports and expansion of the productive base remain key factors in improving the economy’s export-to-import coverage ratio, particularly when exports grow faster than imports.
He added that the improvement in trade performance reflects a cumulative process of investment, industrial expansion and development of export capabilities. This confirms that national industry has become a fundamental pillar in strengthening the economy’s ability to generate exports and access foreign markets, requiring continued support for industrial investment and deeper local value chains.
In his overall assessment of the improved trade balance indicators, Al-Jaghbir said the figures demonstrate tangible progress in the national economy’s productive and export capabilities, led by national industry.
He stressed that this development should not be reduced to merely a relative improvement compared with the performance of regional economies, particularly given the expansion of Jordan’s industrial base, the diversification of its export products and the growing ability of industrial establishments to access and compete in foreign markets.
He said available indicators point to genuine progress in Jordan’s productive and export capabilities, although further progress requires continued efforts to raise productivity, increase local value added, strengthen integration among industrial activities and expand higher-value-added products.
Such measures, he said, would help transform export growth into a sustainable structural improvement in the competitiveness of the national economy.
At the same time, Al-Jaghbir said Jordanian exports face challenges related to high production costs, particularly energy, transportation, financing and logistics costs, as well as the reliance of several industries on imported raw materials and production inputs.
Other challenges include growing price competition in global markets, technical and environmental requirements imposed by importing markets, and regional tensions affecting trade flows and supply chains.
Al-Jaghbir called for reducing production costs, improving energy and transportation efficiency, developing logistics services, facilitating industrial companies’ access to financing and technology, supporting innovation and industrial development, strengthening export promotion and overseas marketing programs, and helping companies—particularly small and medium-sized enterprises—take advantage of opportunities in international markets.
He said these measures would help sustain the positive performance of exports and build on the progress achieved by Jordan’s industrial sector in production and exports in recent years.
Lower Trade Deficit Reflects Growing Export Presence
Ayman Al-Alawneh, Chairman of the Jordanian Businessmen Association, said the improvement in Jordan’s trade balance reflects the ability of national productive sectors to strengthen their presence in foreign markets despite regional challenges and pressures associated with production and import costs.
He stressed the importance of building on this performance to stimulate economic growth and enhance the competitiveness of Jordanian products, noting the significance of the IMF’s recognition of this improvement.
Al-Alawneh said the improvement is particularly important given the challenges facing oil-importing economies in the region. He noted that the stronger trade balance highlights the importance of enhancing Jordan’s export capacity, expanding the domestic production base and increasing the contribution of exports to economic activity.
He said sustaining this improvement requires distinguishing between positive short-term results and sustainable structural changes in the competitiveness of the national economy.
A decline in the trade deficit is an important indicator, he said, but it is not sufficient on its own to assess the development of productive capacity unless it is accompanied by higher local value added, greater diversification of export products and markets, increased industrial productivity and an expanded base of companies capable of competing in global markets.
Regarding prospects for maintaining this performance in the coming years, Al-Alawneh said Jordan has opportunities to expand its exports by benefiting from markets covered by its free trade agreements, while also entering new markets and developing higher-value-added national products.
He stressed the importance of continuing policies that support exports, expanding the use of trade agreements, strengthening programs promoting Jordanian products in target markets, providing suitable financing for productive projects, encouraging innovation and the adoption of modern technology, and strengthening effective public-private partnerships.
These measures, he said, would contribute to increasing foreign-currency inflows, creating jobs and improving the national economy’s ability to withstand external shocks, ultimately supporting more sustainable and balanced economic growth.
Diversifying Exports and Increasing Value Added
Economic expert Hossam Ayesh said the improvement in Jordan’s trade balance reflects the economy’s ability to maintain export flows despite regional instability and challenges affecting trade and supply chains.
However, he said sustaining this improvement requires moving beyond simply increasing exports toward strengthening the economy’s productive and export capabilities in a way that improves the structure of foreign trade over the long term.
Ayesh said the data show that for every dinar of total exports, imports amount to approximately JD1.81. For every dinar of national exports, imports rise to around JD2.10.
This highlights the continued need to expand domestic production, strengthen the competitiveness of Jordanian products and gradually replace imported goods with locally produced alternatives wherever they can be manufactured efficiently in Jordan.
He explained that the growth of national exports, particularly in clothing, fertilizers and potash, provides a productive and export base that can be built upon. However, he stressed the importance of diversifying products and markets rather than relying on a limited number of sectors.
He also emphasized the need to increase local value added by expanding manufacturing and processing and developing more specialized, higher-value products.
Ayesh noted that the increase in re-exports supports trade, transportation, storage and related services, but does not necessarily generate the same value added as manufacturing products domestically.
Therefore, he said, assessing foreign trade performance requires focusing on the growth of national exports and the sources of that growth, alongside analyzing the nature of imports and the extent to which they contribute to productive activity.
He stressed that structural improvement in foreign trade does not simply mean increasing exports and reducing imports. It requires larger, more diversified and higher-value-added national exports, alongside imports that contribute to strengthening production and industrial capabilities.
Only then, he said, can a lower trade deficit be viewed as evidence of a qualitative transformation in the economy’s productive capacity rather than merely a relative improvement in trade indicators over a specific period.
Source: Al-Ghad
