FEAS Yearbook FEAS Yearbook 2011 | Page 32

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 AMMAN STOCK EXCHANGE ECONOMIC AND POLITICAL DEVELOPMENTS Enjoying a stable political and democratic environment, Jordan pioneers the countries of the region in terms of economic liberalization and private sector management. Indeed, it has an attractive investment climate, reflected in a package of investment incentives and exemptions and a free flow of capital. On the Economic level, the Jordanian Economy is expected to achieve a positive growth during 2010. The International Monetary Fund estimates that the growth in Jordan’s real GDP for the year 2010 will reach 3.4%. Inflation during 2010 has mounted to 5% due to higher international fuel and food prices. As for the monetary policy, the Central Bank of Jordan has cut the re-discount rate from 4.75% at the end of 2009 to become 4.25% at the end of November 2010. Interest rate on 6- month Treasury Bills fell from 2.8% at the end of 2009 to 2.3% at the end of November 2010, while the weighted average of interest rates for loans went down and reached 8.9% compared with 9.1% at the end of 2009. Regarding the fiscal policy, public revenues showed an increase of 3.2% in the first 10 months of 2010 compared with the same period in 2009, while public spending showed a decrease of 2.6% for the same period. This decrease in government spending came as a result of the austerity measures applied by the government in order to curb the budget deficit and maintain the financial stability of the Kingdom. Domestic liquidity measured by Money Supply (M2) grew by 9.5% at the end of November 2010 when compared with its levels at the end of 2009. With regard to the External Sector, Jordanian exports and re-exports have risen by 8.1% during the first 10 months of 2010 compared with the same period of 2009, while imports have risen by 9.5% during the same period. On the other hand, foreign currency reserves at the Central Bank of Jordan increased by 10.5% at the end of November 2010 compared with the end of 2009 reaching USD10.9 billion. Information obtained from the Exchange. JORDAN ECONOMIC CHARTS AND TABLES Nominal GDP at Market Prices (US$ million) Inflation (%) Money Supply (M2) (US$ million) Population (million) Per Capita GDP at Current Market Prices (US$) Exports, f.o.b. (US$ million) Imports, f.o.b. (US$ million) Direct Foreign Investment in Jordan (US$ million) 2005 2006 2007 2008 2009 2010 12,588.7 3.5 17,438.6 5.5 2,300.1 4,301.4 9,317.3 1,984.5 15,645.4 6.3 19,900.8 5.6 2,793.8 5,204.4 10,260.4 3,544.0 17,765.4 4.7 22,012.4 5.7 3,104.2 5,731.5 12,183.1 2,622.1 22,719.3 13.9 25,816.9 5.9 3,883.6 7,945.0 15,116.2 2,828.9 25,127.8 -0.7 28,227.5 6.0 4,202.0 6,384.1 12,658.8 2,430.0 27,193.2 (a) 5.0 30,907.6 (b) 6.1 4,450.6 (a) 5,189.8 (c) 9,980.8 (c) 1,364.5 (c) (a) Estimate (b) November 2010 (c) Jan. - Sept. 2010 Key Information Contacts Jordan Securities Commission www.jsc.gov.jo Securities Depository Center www.sdc.com.jo Jordan Investment Board www.jordaninvestment.com Arab Monetary Fund www.amf.org.ae Nominal GDP (USD billions) Inflation (%) 30 14 12 25 10 20 8 15 6 4 10 2 5 0 Ministry of Finance www.mof.gov.jo Central Bank of Jordan (CBJ) www.cbj.gov.jo National Information Center www.nic.gov.jo Department of Statistics www.dos.gov.jo 0 2005 PAGE 30 2006 2007 2008 2009 2010 -2 2005 2006 2007 2008 2009 2010