(MENAFN- Jordan Times) AMMAN - The Jordan Economic Forum, in collaboration with the Amman Chamber of Industry, on Saturday launched a policy paper on the Competitive Industrial Performance index for 2022.
Under the theme "Competitiveness of the manufacturing Industries in Jordan", the report provided an analysis of Jordan's industrial performance and addressed the challenges and opportunities facing the country's manufacturing sector, according to the Jordan News Agency, Petra.
Released in the presence of Yusuf
Shamali, Minister of Industry, Trade and Supply, the paper also highlighted Jordan's regional progress, ranking first in the Arab world and 24th globally in the value-added index for manufacturing as a percentage of gross domestic product (GDP).
The latest data from the Department of Statistics (DoS) showed that manufacturing contributes 17.4 per cent to Jordan's GDP in 2022, Petra added.
The United States stands out as the most important external market for Jordan's industrial exports, accounting for 27.1 per cent of total industrial exports, particularly in the apparel sector, which reflects the high quality and competitiveness of Jordanian industries in the global market, the paper read.
The paper also went over the challenges facing Jordan's manufacturing sector, including the three places decline in the country's ranking in the Industrial Competitiveness Index over the past decade.
It also emphasised the need to improve the level of social protection in the manufacturing sector, covering all industrial establishments and their employees, while reducing the number of establishments operating outside the social security system.
The manufacturing sector receives 11.7 per cent of the total credit facilities granted by Jordanian banks, the report added, underscoring the sector's importance in the country's economic landscape.
The construction sector receives 25 per cent of credit facilities due to the banking sector's focus on consumer loans, which are less risky than productive loans.
The paper also highlighted major challenges affecting the competitiveness of Jordan's manufacturing sector, including production costs related to energy, electricity, shipping, transportation and imported raw materials.
The sector's production and export activities were also hampered by inadequate national policies and programmes, along with a lack of competent and trained labour in several subsectors.
The paper also called for the optimal use of signed free trade agreements, particularly with the European market and the free trade agreement with the United States, to enhance the competitiveness of Jordan's industrial exports.
It also stressed the importance of improving the output of the vocational and technical education sector to provide a highly skilled workforce that meets the needs of national industry and contributes to improving productivity, efficiency and competitiveness in this vital sector.
MENAFN20012024000028011005ID1107746160
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.