Daily Almanac for
Jul 25, 2008
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EncyclopediaJordan, country, Asia

Economy

In the late 1990s, Jordan had an unemployment rate of almost 25%, while nearly 50% of those who were employed were on the government payroll. Poverty and a large foreign debt remained major problems. Less than 5% of the country's land is arable, and farm output is further limited by the small size of most farms, inefficient methods of tilling the soil, and inadequate irrigation. The principal crops are wheat, barley, lentils, tomatoes, eggplants, citrus fruits, olives, and grapes. Many Jordanians support themselves by raising sheep, goats, and poultry.

Manufactures are largely limited to basic items such as foods, beverages, clothing, construction materials (especially cement), and other consumer goods. Nearly 50% of the country's industry is based in Amman. Numerous artisans make items of leather, wood, and metal. Phosphate rock, fertilizers, and potash are produced in significant quantities. Oil was discovered in 1982, and a small oil industry that includes petroleum refining has been developed. During the 1970s and 80s aid from other Arab countries and remittances from Jordanian workers living abroad were important factors in the country's economy. A slowdown in both sources of income in the 1990s, as well as an influx of refugees, has slowed economic progress.

Jordan's transportation system is limited to a small network of all-weather roads and a narrow-gauge railroad (formerly part of the Hejaz RR) that enters Jordan from Syria and runs through Amman and to Aqaba, the country's only seaport. A modern highway running from Aqaba to Iraq has made trade and transportation more efficient.

The annual cost of Jordan's imports usually far exceeds its earnings from exports. The principal imports are crude oil, machinery, transport equipment, foodstuffs, and manufactured goods; the main exports are phosphates, potash, fertilizers, and agricultural products. Jordan's leading trade partners are the European Union nations, Iraq, India, Saudi Arabia, the United States, and Japan.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2007, Columbia University Press. All rights reserved.

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