What's Happening?
The industrial sector in Jordan has experienced eight consecutive months of growth, indicating a resurgence in investor confidence and economic stability. According to the Department of Statistics, the industrial production
index increased by 1.76 percent in the first eight months of 2025 compared to the same period in 2024. This growth is attributed to increased production in key manufacturing industries such as chemical, pharmaceutical, food, and engineering sectors. The rise in output is supported by strong export demand from regional markets including Iraq and Saudi Arabia. Industry representatives highlight that this growth reflects genuine increases in factory output rather than price fluctuations, with the sector operating at higher production capacities to meet rising demand.
Why It's Important?
The growth in Jordan's industrial sector is significant as it underscores the sector's role in driving national development and economic transformation. The sector's resilience amidst global challenges, such as elevated energy costs and disrupted supply chains, demonstrates its capacity to sustain recovery. With the industrial sector contributing approximately 18 percent to Jordan's GDP, it remains a crucial pillar for job creation, export growth, and macroeconomic stability. The steady increase in industrial output sends a positive signal to investors about the stability and competitiveness of Jordan's economy, potentially attracting further investment and fostering economic growth.
What's Next?
Policymakers are encouraged to continue efforts to reduce energy and logistics costs and enhance access to financing for industrial investors. These measures are essential to maintain the momentum of growth and ensure the sector's continued contribution to sustainable economic development. The focus on expanding production capacity and meeting international demand will likely remain a priority for Jordan's industrial sector, as it seeks to strengthen its position in regional and global markets.
Beyond the Headlines
The industrial sector's growth in Jordan highlights the importance of a stable monetary and fiscal environment in fostering economic development. The update of the industrial production index's base year to 2018 provides a more accurate reflection of current economic structures, aiding in better policy formulation. The sector's performance also emphasizes the need for continuous adaptation and resilience in the face of global economic challenges, reinforcing the importance of strategic planning and investment in industrial capabilities.
