Jordan Times
Tuesday, February 13, 2007

Clothing industry continues to lead, drive up national exports in 2006

By Samir Ghawi

AMMAN – Clothing exports accelerated last year expanding by 18 per cent compared to a 5.1 per cent growth in 2005, according to figures compiled by the Department of Statistics (DoS).

At JD879 million in 2006, clothing represented 30.3 per cent of total exports, slightly up from the 29 per cent share in 2005 when the value was JD744.8 million.

Since 2002, when the percentage stood at 23.5 per cent, exports of clothing has accounted for 29-30 per cent, leading and driving up total exports noting that the highest share was 30.7 per cent registered in 2004 when such exports rose by 48 per cent to JD708.6 million from JD478.7 million in 2003.

The United States of America was the main importer of Jordanian products last year, buying JD905 million worth of goods or 31.2 per cent of the JD2,903 million in total national exports. Clothing was the major exported item, amounting to JD822 million or 90.8 per cent of Jordanian exports to the USA.

The DoS report on foreign trade statistics for the year 2006 showed that exports of fertilisers amounted to JD229 million ranking second at 7.9 per cent of the national exports. At JD210 million, pharmaceutical products came third taking a 7.2 per cent share followed by crude potash, which at JD181 million, constituting 6.2 per cent of the total national exports in the year 2006.

The value of national exports was 12.9 per cent higher than the JD2,570 million posted in 2005, the DoS pointed out, while indicating at the same time that when adding the value of reexports, the total value becomes JD3,663 million, 20.1 per cent above the JD3,050 million level in 2005.

Iraq was in second place although exports to Baghdad were lower by JD53 million to JD327 million from JD380 million in 2005. Exports to Iraq, 11.3 per cent of total national exports, included vegetable oils, fats, cigarettes, soap, detergents, aluminum and aluminum products.

India ranked third as phosphate, potash, fertilisers and phosphoric acid exports to that country amounted to JD280 million or 9.6 per cent of Jordan’s exports.

Saudi Arabia, in fourth place, more than compensated the drop in exports to Iraq as sales to Riyadh rose from JD172 million in 2005 to JD251 million last year. Exports, accounting for 8.6 per cent of the total, were mainly pharmaceuticals, electrical machinery, apparatus and appliances and live sheep.

Total exports to all these countries (US, Iraq, India and Saudi Arabia) together constituted 60.7 per cent of the total national exports in the year 2006.

Geographically, exports to the Greater Arab Trade Zone, which covers the Palestinian territories, Iraq, Lebanon, Syria, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, Yemen, Libya, Morocco, Sudan, Egypt, Tunisia and the United Arab Emirates constituted 40.5 per cent of the total.

European Union (EU) countries and North American Free Trade Agreement (NAFTA) states accounted for 3.4 per cent and 31.5 per cent respectively of the total national exports during the year 2006.

DoS figures showed JD1,177 million (JD1,036 million in 2005) of exports to the Greater Arab Trade Zone, JD99.7 million (JD90.4 million ) to the EU and JD913.2 million (JD796.0 million) to NAFTA countries. Exports to Latin American states increased from JD3.3 million to JD5.3 million in 2006.

In 2005, exports covered 41 per cent of the imports but higher exports last year brought up the coverage of imports to 45.1 per cent.

Imports in 2006 increased by nine per cent to JD8,116 million from JD7,443 million registered in the previous year.

The Greater Arab Trade Zone countries constituted 35.9 per cent of the total imports, while imports from EU states and from NAFTA countries came at 23.2 per cent and 5.2 per cent respectively.

DoS figures showed JD2,917.3 million (JD2,499.1million in 2005) of purchases from the Greater Arab Trade Zone countries, JD1,880.6 million (JD1,798.1 million) from the EU and JD421.6 million (JD446.2 million) from NAFTA states. Imports from Latin American countries rose from JD125.4 million to JD139.4 million in 2006.

Crude oil topped the list of imports as it amounted to JD1,434 million accounting for 17.7 per cent of total purchases. Vehicles, motorcycles and their spare parts ranked second amounting to JD719 million or 8.9 per cent, followed by machinery, mechanical equipment appliances and parts thereof, amounting to JD598 million or 7.4 per cent of the total imports.

At JD598 million, electrical appliances and their spare parts came in fourth place, for a 7.4 per cent share of total imports.

Imports from Saudi Arabia ranked first and amounted to JD2,080 million or 25.6 per cent of the total compared to JD1,758 million in 2005. JD1,702 million or 81.8 per cent of the purchases last year was mainly crude oil and by-products.

China came in second place with imports amounting to JD848 million or 10.4 per cent of the total compared to JD687 million in 2005. The main imported items were textiles and clothing worth JD256 million which represented 30.2 per cent of imports’ value from China.

Automobiles and their spare parts worth JD248 million represented 39.2 per cent of the JD632 million of imports from Germany which accounted for 7.8 of Jordan’s total import bill.

Imports from the USA, amounting to JD385 million and constituting 4.7 per cent of the overall imports, included machinery, equipment and appliances and parts thereof valued at JD60 million or 15.4 per cent of the value of our imports from the USA in the year 2006.

Trade with Israel was higher both in exports and reexports as the amounts totalled 85.2 million (JD75.7 million in 2005), JD8.5 million (JD8.2 million). Imports from Israel dropped from JD110.7 million in 2005 to JD98.9 million last year.

The deficit in the trade balance, calculated by deducting the value of imports from the value of total exports widened by 1.3 per cent to JD4,453 million for the year 2006 as compared with JD4,393 million during 2005.


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