Jordan Times
Friday, June 22, 2007
GDP grows by 5.9% as inflation surges to 8.2% in Q1
Gross domestic product (GDP) at fixed market prices rose during the first quarter of this year by 5.9 per cent compared to
that registered during the same period last year and by 12.9 per cent at current market prices, according to the latest
report of the Department of Statistics (DoS).
The overall GDP at current prices reached JD2,513 million compared to JD2,225.2 million during the corresponding period of
2006, the DoS report also revealed.
Exports grew by 15.9 per cent, representing around 31.6 per cent when measured to the GDP compared to 30.8 per cent
Imports also increased by 3.5 per cent during the first quarter of 2007, amounting to 81.8 per cent when measured to the GDP
compared to 89.3 per cent during the corresponding period in 2006.
Subsequently, the trade deficit dropped by 8.4 per cent, representing 43.2 per cent to the GDP during the first quarter of
2007 compared to 53.3 per cent during the same period of 2006.
Most economic activities contributed to the GDP at different rates. Taxes on products grew by 11.8 per cent, recording the
highest growth rate at fixed prices. The increase resulted from a 10.4 per cent growth in the taxes on imports and an
18.6 per cent rise in the taxes on industrial products.
Financial, banking, insurance and real estate services followed, at a 7.9 per cent increase at fixed prices.
Construction activities followed at 7.2 per cent while personal and social services came next, along with water, electricity,
wholesale and retail, transport, storage and telecommunication services. Meanwhile, the mining industries registered a decline
during the first three months of this year.
Manufacturing industries also achieved a modest growth of 2.7 per cent at fixed prices as a result of the slight growth in
the timber and paper industries coupled with a decrease in garment manufacturing, weaving and food industries.
The inflation rate surged to 8.2 per cent during the January–March period compared to 4.4 per cent during the corresponding
period in 2006, the report indicated.
Meanwhile, the employment rate rose to 14.3 per cent this year compared to 13.4 per cent in 2006.