Jordan’s Industrial Production Rises 2.73% in Q1 2025 Amid Manufacturing, Power Sector Gains

Jordan’s industrial sector posted steady growth in the first quarter of 2025, with the industrial production index climbing 2.73 percent year on year to reach 87.62 points, according to data released by the Department of Statistics.

The increase was largely fueled by strong performances in manufacturing and electricity production. Manufacturing output rose by 3.2 percent in the first three months of the year, while electricity production surged by 4.97 percent, the state-run Jordan News Agency (Petra) reported.

In contrast, the extractive industries sector saw a sharp decline of 8.03 percent, tempering the overall gains in industrial activity.

The upward momentum in the industrial index aligns with a broader trend seen earlier in the year. In January, the index recorded a 2.76 percent increase year on year, reaching 88 points.

The monthly data for March 2025 further illustrates the mixed picture. The index rose by 1.73 percent compared to March 2024, supported by a 3.38 percent year-on-year increase in manufacturing and a 4.02 percent rise in electricity output. However, the extractive industries sector contracted dramatically by 23.89 percent during the same period.

Month on month, the industrial production index edged up by 0.44 percent from February to March, climbing from 87.24 to 87.62 points. Notably, the extractive sector rebounded with a 9.96 percent increase, while manufacturing posted a modest gain of 0.41 percent. The electricity sector, however, saw a 7.18 percent decline from the previous month.

The growth in industrial activity comes as Jordan faces rising inflation. The inflation rate accelerated by 2.21 percent annually during the first two months of 2025, driven by higher prices in several key commodity categories.

In a separate development, Fitch Ratings earlier this month affirmed Jordan’s long-term foreign currency issuer default rating at “BB-” with a stable outlook. The US-based agency cited macroeconomic stability, a solid financial sector, and ongoing fiscal and economic reforms as contributing factors.

While the stable rating offers reassurance about Jordan’s economic direction, the “BB-” grade still indicates heightened vulnerability to economic shocks compared to higher-rated regional peers. For context, Fitch reaffirmed Saudi Arabia’s rating at “A+” and the UAE’s at “AA-” earlier this year.

Jordan’s government continues to rely on international support, public investment, and structural reforms to stimulate growth and build resilience in key economic sectors.