What's Happening?
The industrial sector in Jordan has experienced eight consecutive months of growth, indicating renewed 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 higher production in chemical, pharmaceutical, food, and engineering industries, driven by strong export demand from Iraq, Saudi Arabia, and other regional markets. Industry representatives, such as Ihab Qadri from the Jordan Chamber of Industry, highlight the genuine increase in factory output and the stable monetary and fiscal environment that has encouraged reinvestment and expansion.
Why It's Important?
The steady growth of Jordan's industrial sector is crucial for the country's economic transformation towards a productive, export-oriented economy. With the sector contributing around 18 percent of Jordan's GDP, it plays a significant role in job creation, export growth, and macroeconomic stability. The resilience of the sector, despite global challenges like elevated energy costs and disrupted supply chains, sends a positive message to investors about the stability and competitiveness of Jordan's economy. This growth supports the objectives of the Economic Modernization Vision, which aims to enhance the industrial sector's role in national development.
What's Next?
Industry experts suggest that policymakers should focus on reducing energy and logistics costs and improving access to financing for industrial investors. Continued efforts in these areas could further strengthen the sector's growth and its contribution to sustainable economic development. The updated industrial index base year to 2018 provides a more accurate reflection of current economic structures, which could guide future policy decisions.
Beyond the Headlines
The growth in Jordan's industrial sector highlights the importance of adapting to global economic challenges and leveraging regional trade opportunities. The sector's ability to sustain recovery despite these challenges underscores the potential for long-term economic stability and development.