Jordan Times
Wednesday, June 8, 2005
GDP grows 7.7% at fixed prices during first quarter of this year
AMMAN (JT) — Gross domestic product (GDP) at
fixed market prices rose by 7.7 per cent during the first quarter of this year
compared to the same period in 2004.
At current market prices, the growth was 12.4 per cent indicating an increase in
the deflated GDP by 4.4 per cent which reflects higher prices in the economy.
All economic activities achieved positive growth rates except for the
agriculture and mining sectors. The added value generated in the agriculture
sector dropped by two per cent at fixed prices.
In the mining sector, the added value fell one per cent at fixed prices due to a
4.9 per cent decline in potash production.
The large increase in the GDP growth was a result of higher added value
generated in several sectors including the convertible (manufacturing)
industries, electricity, water supplies, construction, retail and wholesale
trade, hospitality sector, transport and communication, financial services and
insurance, social and personal services, and producers of governmental services.
The added value in the convertible industries went up by 13.5 per cent at fixed
price and by 18.9 per cent at current prices. This growth was attributed to an
increase in production at the Qualified Industrial Zones by 19.7 per cent, food
output by 30 per cent, furniture by 50.2 per cent, paper by 40.2 per cent and
chemicals by 14.4 per cent.
The aforementioned manufacturing results indicate that the sector’s prices grew
by 4.7 per cent noting that the industrial production prices rose by 5.4 per
cent.
The construction sector achieved 9.1 per cent growth at fixed prices and 13.2
per cent at current prices reflecting a 3.7 per cent increase in average prices
compared to the first quarter of last year.
The added value generated in the retail, wholesale and the hospitality sector
grew by 8.2 per cent at fixed prices and 11.7 per cent at current prices.
Transport, storing and communications sector surged by 9.4 per cent at fixed
prices and 12.4 per cent at current prices.
Activities of financial institutions and insurance companies provided 15.4 per
cent in added value at fixed prices and 20.5 per cent at current prices.
As a whole, the sector comprising financial services, insurance and real estate
did not grow more than 5.5 per cent at fixed prices and 8.3 per cent at current
prices due to the weak real estate activity the added value of which grew by
just 1.2 per cent at fixed prices.
Providers of governmental services were estimated to grow by 4.7 per cent at
fixed prices, and 7.7 per cent at current prices due to the increase in the job
market.
Other economic activities also contributed to the GDP growth by 4.5 per cent at
fixed prices. Those activities include personal and social services, domestic
services, non-profit organisations which grew by 8.9 per cent at fixed prices
and 10.5 per cent at current prices.
Health and education services are considered the most active economic
contributers within the group. Education services’ added value registered a
growth rate of 3.1 per cent at fixed prices while health services recorded 8.4
per cent.