Economic Reform Activity (ERA)

Background:Several factors have contributed to the enduring strain on Jordan's economy. These include the prevailing regional instability, the stagnation of surrounding economies, a sharp reduction in financial support from oil-producing states, slower remittances from the region, and the closing of borders, leading to lower import purchases and investment among Jordan's natural trade partners. These elements, coupled with rapid increases in refugee populations, a decrease in tourism, an unpredictable regulatory environment that hinders the business enabling environment, including trade and investment, the low sophistication of domestic enterprises, imbalanced unemployment, and disparate access to reliable infrastructure have contributed to the economic contraction affecting Jordan. This state has been further compounded by a limited tax base and ongoing corruption challenges.While the challenges are robust, the opportunities and domestic potential give rise to a hopeful future. The Government of Jordan (GoJ) has taken a proactive role in attempting to spur investment, support export promotion, and build national capacity. The private sector has pushed forward with new gains in increased formalization and growth of the Home Based Business sector. Working together, bolstered by donor community support, the GoJ and Jordanian private sector can jumpstart the economy.Contact Information: Alla'a J. Sawaked, Acquisition & Assistance Specialist, Phone +962(6)590-6898, Email asawaked@usaid.gov Office Address :Unit #70206 APO AE 09892-0206 Location: Jordan USAID-Amman Set Aside: