Jordan's Industrial Production Shows Modest Growth Amid Challenges

Industry representatives note that, while the growth rate is modest, it signifies the sector's capability to maintain continuity and address local market needs. They emphasize the importance of enhancing national industries' competitiveness, stimulating investment, and improving production efficiency to expand capacity, boost contributions to the economy, and create job opportunities.

In discussions with Al-Ghad, they highlighted the need for ongoing support measures for domestic industry, including reducing production costs and providing affordable financing for modernizing production lines. There is also a call for stronger technological upgrades, improved energy efficiency, and better access to new export markets for Jordanian products.

The Department of Statistics released a monthly report indicating a 0.62% rise in the general index of industrial production from January to August 2026 compared to the same timeframe in 2025. Within this period, manufacturing output increased by 0.71%, accounting for 88.7% of the overall index, while electricity production grew by 2.14%. However, production in the extractive industries saw a decline of 2.21%.

The industrial sector is made up of approximately 17,000 establishments that employ around 271,000 workers and produce 1,500 goods, exporting about 1,400 products to 150 countries.

Fathi Al-Jaghbir, president of the Jordan and Amman Chambers of Industry, noted that the increase in production during the first eight months indicates ongoing industrial activity amid economic challenges. He reported significant growth in industries such as leather and garments, which rose by 20.5%, and wood and furniture, which expanded by 15.9%. However, some sectors like chemicals, construction, and mining faced declines.

Al-Jaghbir stressed that industrial indicators should be evaluated in the context of multiple factors, not just growth rates. He pointed out the 0.71% growth in manufacturing alongside a 6.2% increase in the sector’s real value added in the second quarter, underscoring the industry's role in supporting economic activity. He called for continued efforts to lower energy and transportation costs, stimulate investment, and enhance the reliance on locally produced goods.

Ahmad Al-Khudari, president of the Jordan Exporters Association, expressed optimism that the growth in industrial production indicates the sector's strength and capacity to adapt. He anticipates increased national exports this year, as the association works to open new markets, especially non-traditional ones.

Saeed Rassas, president of the Association of Industrial Investors in West and North Amman, echoed that the rise in production is a testament to the sector's resilience. He called for comprehensive measures to support investment, enhance production capabilities, and improve access to financing. Rassas underlined the importance of addressing logistical and customs challenges to facilitate growth and strengthen exports.

The industrial sector's outlook remains linked to regional conditions, supply chain stability, and demand levels. Rassas emphasized that fostering a supportive environment with clear economic policies and incentives tailored to the sector's needs is crucial for sustained growth.