Jordan Enterprise Support Activity (JESA)

BACK GROUND: Jordan's economy grew steadily from 1999 to 2006, when Gross Domestic Product (GDP) growth peaked at 8 percent (8%). In recent years, a number of forces have combined to threaten the sustainability of these gains, and in 2012 the country entered into a period of economic deceleration. While Jordan has been able to benefit from associated decreases in oil prices, the slowdown in Gulf economies led to a reduction in exports from Jordan to countries in the region, decreased tourism, and a slowdown in remittances and financial inflows. Problems in neighboring economies have also negatively impacted Jordan's economy, as neighbors have provided historical trade routes and destinations for Jordanian goods; Jordan's border with Syria recently opened with limited traffic and its border with Iraq only reopened in fall 2017. Jordan has a trade deficit of USD 12.945 billion as of November 2017, equal to nearly one third of its GDP and representing one of the highest trade deficits in the world. In addition to the impacts of regional instability on Jordan's ability to maintain and increase its exports, private sector stakeholders reported that the lack of a stable and predictable policy environment was a key challenge to increasing investment. Evidence suggests that there is a causal link between poverty reduction and a strong and growing micro and small to medium enterprise (MSME) sector, so the presence of a vibrant and growing MSME sector can bolster economic growth. However, many MSME enterprises in Jordan are challenged by different factors that limit their ability to compete and prosper. These factors include, but are not limited to: the enabling environment for investment, limitations to business growth and expansion and access to finance.