Jordan Times
Monday, September 12, 2005
GDP grows 7.5% at fixed
prices during second quarter of 2005
AMMAN (JT) — Gross domestic product (GDP) grew by 7.5 per cent at fixed prices
during the second quarter of this year.
The Department of Statistics (DoS) indicated in a press release that the growth
at current prices was 11.6 per cent.
“ This means that the GDP deflator, which reflects the general price level in
the economy, rose by 4.1 per cent,” the DoS calculated.
The statistics showed that the value added in the goods' production sector,
which contributes around 35 per cent to the GDP, surged by 9.3 per cent and 15
per cent in fixed and current prices respectively.
The valuue added in the agricultural sector went up by 10.1 per cent compared to
that of the same quarter last year.
In the manufacturing (convertible) industries, the DoS calculated the growth at
10.3 per cent at fixed prices and 12.2 per cent at current prices.
It attributed the growth to a 14 per cent increase in the output from the
Qualifying Industrial Zones (QIZs), an 18 per cent rise in the production of
food industries and a 45 per cent surge in the manufacturing of furniture,
non-metallic and metallic products.
This growth was accompanied by a 1.9 per cent rise in the prices of products
related to the sector noting that the prices of industrial output was reflected
by a 2.1 per cent increase.
Electricity and water sectors registered a 7.1 per cent growth while the
construction sector went up by 6.5 per cent at fixed prices.
Other business activities such as trade, financial and transport services also
posted high growth rates at fixed prices, the DoS said in its press release.
The value added in wholesale and retail activities surged by 9.7 per cent due to
higher trading volume of imported and local products.
At current prices, the growth rate stood at 10.6 per cent, which indicates that
prices of goods related to the sector increased by one per cent, in line with
the increase in the cost of living index by 1.2 per cent.
Growth in the transport, storage and telecommunications sector went up by 9.3
per cent at fixed prices and 9.7 per cent at current prices.
The DoS attributed the rise to an increase in the value added achieved in the
telecommunications and land transport activities which flourished due to higher
imports and higher output of goods.
The value added recorded by financial institutions and insurance companies
surged by 22.2 per cent and 24.6 at fixed and current prices respectively due to
the large production increase of banks, insurance companies and financial
markets.
When the financial, insurance and real estate activities were taken as
aggregate, the growth as a whole did not exceed 7.5 per cent at fixed prices and
8.9 per cent at current prices because the real estate sector which accounts for
the largest share in this sector did not grow more than 1.2 per cent.
Producers of government services also posted a 3.5 per cent and 6.8 per cent
growth in fixed and current prices respectively.
The growth was the outcome of an increase in the number of job appointments made
during the first quarter of 2005, according to the DoS figures.
The contribution of other economic activities to the GDP was 4.4 per cent at
fixed prices, mainly in the health education and social services.