Industry leads 40 percent of economic growth.. and manufacturing records the highest quarterly growth since 2008

The President of the Jordan Chamber of Industry, Fathi Al-Jaghbir, believes that the figures reflect the transition of the industry from merely benefiting from the improvement in economic activity to actually contributing to driving growth, driven by the growth in demand for industrial products locally and abroad, the improvement in exports, and the expansion of the base of Jordanian markets and products.

Al-Jaghbir told Al-Rai that the growth of manufacturing industries was not the result of a single industrial activity, but came from a group of main industries, foremost of which are food, textiles and clothing, chemicals, construction, and therapeutic and medical supplies, which, according to him, reflects the diversity of growth sources within the industrial base.

Growth.. From output to investment

He explained that the current indicators have begun to show the impact of industrial activity on production and exports, but the transition of the impact of growth to investment and employment requires a longer period, considering that decisions to expand production lines and new investments are linked to the sustainability of demand, not the results of one quarter.

He stressed that the challenge in the coming phase is to convert the recorded growth into a sustainable industrial expansion cycle that encourages existing establishments to increase their production capacities and pushes for the establishment of new industrial investments.

This need comes amid the continuation of a number of challenges that put pressure on the competitiveness of the sector, foremost of which are the costs of energy, transportation, shipping, and financing, in addition to production costs and access to foreign markets.

Al-Jaghbir pointed out that the nature of the industry, which is intensive in investment and energy, makes any decrease in these costs a direct factor in enhancing the competitiveness of the Jordanian product, calling for the provision of more competitive energy solutions, the development of logistics services, and the provision of financing tools at costs and terms suitable for the nature of industrial investment.

Exports.. Diversity takes precedence over mere growth

According to Al-Jaghbir, the increase in industrial exports is no longer linked only to the increase in their value, but also to the expansion of commodity and geographical diversity, with Jordanian products reaching Arab, European, Asian, and American markets.

He points out that this diversity gives the sector greater ability to deal with economic and geopolitical fluctuations and reduces the risks of relying on a single market or a limited number of products.

He stressed the importance of building on this presence by increasing the access of Jordanian products to markets with untapped opportunities, taking greater advantage of free trade agreements, and linking Jordanian factories to buyers and global supply chains.

The second half.. Sustainability is the test

As attention turns to the sector's performance during the second half of the year, Al-Jaghbir said that current indicators support the continuation of the positive trend, provided that external demand continues, regional conditions improve, and no new shocks occur in energy, shipping, and supply chain prices.

He emphasized that the goal should not be limited to achieving a specific growth rate, but rather to the sustainability of growth, the expansion of its base, and its conversion into investments, production, new job opportunities, and exports.

According to data from the Jordan Chamber of Industry, manufacturing industries also maintained their position as the largest economic activity in terms of contribution to Gross Domestic Product at constant prices, with a share of 17.2%, which enhances the importance of the industry in the structure of the national economy and its role in achieving the targets of the Economic Modernization Vision.