Jordan Current Account Balance (% of GDP)

Current Account in Jordan

In Q1 2023, annual GDP should have waned further after cooling to 2.0% in Q4. Industrial production plunged 8.1% year on year in March—the steepest pace of decline in over two years. The downturn was largely due to a decrease in manufacturing activity. Consequently, industrial output declined 1.9% year on year in Q1, deteriorating from Q4’s 0.9% increase and marking the worst performance since Q4 2020. More positively, the external sector likely drove an overall expansion. Annual growth in the value of merchandise exports stood at 6.3% in Q1, hinting at strong foreign demand. Similarly, domestic demand likely fared well in Q1 despite higher interest rates and still-elevated price pressures: The value of goods imports grew by 5.6% in the first three months of the year. In addition, the unemployment rate softened to 21.9% in Q1, supporting private spending.