Jordan - Balance of payments





Jordan's chronically adverse trade balance has long been offset by payments from foreign governments and agencies, especially from Jordan's oil-rich Arab allies, and by remittances from Jordanians working abroad, chiefly in Sa'udi Arabia. During the Gulf War, expatriate remittances and aid from Arab countries dropped sharply, causing the improvement of the trade deficit to halt. This trend continued into the mid-1990s despite an increasing surplus in the services sector. Although Jordan enjoyed a balance of payments surplus in 2000 of around 11% of GDP, the country suffers from a chronic trade deficit, largely due to its reliance on foreign oil. Annual imports usually amount to more than double the exports.

The US Central Intelligence Agency (CIA) reports that in 2002 the purchasing power parity of Jordan's exports was $2.5 billion while imports totaled $4.4 billion resulting in a trade deficit of $1.9 billion.

The International Monetary Fund (IMF) reports that in 2001 Jordan had exports of goods totaling $2.3 billion and imports totaling $4.3 billion. The services credit totaled $1.48 billion and debit $1.73 billion. The following table summarizes Jordan's balance of payments as reported by the IMF for 2001 in millions of US dollars.

Jordan

Current Account -4
Balance on goods -2,007
Balance on services -243
Balance on income 187
Current transfers 2,059
Capital Account 22
Financial Account -528
Direct investment abroad -8
Direct investment in Jordan 100
Portfolio investment assets
Portfolio investment liabilities -172
Other investment assets 27
Other investment liabilities 580
Net Errors and Omissions 80
Reserves and Related Items -625

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