By Shane McGinley
A 17.4% surge in exports was still unable to outweigh imports of more than $11bn
Jordan’s trade deficit in the first nine months of 2010
rose 8.2 percent to nearly $6bn, the Arab state has said.
Trade deficit rose at the end of September by 8.2 percent
to JD4,287bn ($6.06bn), compared with JD3,962bn ($5.61bn) in the same period a
year earlier, state news agency Petra said, citing figure from the Department
of Statistics (DOS).
The value of exports in the nine months to 30 September,
2010, rose 17.4 percent to JD3.100bn ($4.384bn), the data showed.
Imports edged up 8.5 percent to JD7,966bn ($11.267bn),
resulting in the deficit for the year.
Jordan’s largest trading partners are Iraq, Saudi Arabia,
USA, India, Germany, Italy, and China.
The situation of having a large trade deficit in Jordan is not unique to Jordan only as it prevails in other non-oil producing Arab countries. Jordan is a small country with few resources or products to export. It has a lot of Iraqi refugees that are not allowed to work and produce to cover the high cost of living in Amman and other main cities; this is a burden on the Jordanian economy. Since there are few producing industries in Jordan, their capacity to supply products and services are limited due to the lower Foreign Direct Investment in it. Also the insecurity that exists of having an unstable Mid-East region with no peaceful resolution to the Plastenian-Isreali conflict that looms next door to Jordan, this made the situation harder for Jordan to expand its industries and generate Added Value operations. The Stagnation in the local economy, the unavailability of cheap capital for companies to borrow in order to expand or the existence of a tight monetary policy caused deficits.