Foreign trade index in Jordan shows promising trends in January

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AMMAN — The Kingdom's foreign trade index for January has shown promising signs, with "notable" enhancements observed in the country's overall exports, imports, and trade balance.

As per an analysis conducted by the Jordan News Agency, Petra, the total exports of the Kingdom in the initial month of 2024 touched JD650 million marking a 2.7 per cent in comparison with the corresponding period of the previous year.

Conversely, imports witnessed a "substantial" decrease of 19.7 per cent during the same period, leading to a 33.7 per cent decrease in the Kingdom’s trade deficit.

The increase in exports was attributed to the growth in sectors such as fertilisers, garments, and pharmaceuticals, which collectively propelled the value of national exports to JD593 million for the month.

The decrease in imports was predominantly influenced by a decrease in the value of crude oil and its derivatives, machinery, and electrical tools, which collectively totalled JD1.318 billion.

These positive indicators highlight the robustness of Jordan’s economy in the face of various challenges, including the Israeli war on Gaza, events in the Bab Al Mandab Strait, and other global economic uncertainties.

The Department of Statistics recently reported a ten-percentage-point increase in the ratio of total exports to imports coverage, reaching 49 per cent in January of this year, up from 39 per cent for the same month in 2023, signalling a sustained enhancement in the Kingdom’s trade balance.

The decrease in the Kingdom’s trade deficit for January reflects the intensive efforts spearheaded by the government, under the directives of His Majesty King Abdullah, aimed at augmenting trade performance and strengthening the country’s economic competitiveness.

Former Finance Minister Mohammed Abu Hammour underscored the significance of these positive developments and emphasised the necessity of further analysis to perpetuate these trends. He also highlighted the imperative for ongoing efforts to bolster renewable energy sources and endorse locally produced goods to uphold consumer confidence.