Country evaluation
The chosen country is Jordan. The country is generally a small market with high income. It has a population of around 9.4 million.
Level of economic development
The Real GDP of the country was 1.9 percent in 2018, and during the second quarter of 2019, the growth rate stood at 1.8 percent. The prolonged weak level of economic development of Jordan is caused by the reducing labor force engagement rate along with the escalated level of unemployment in the country. for instance, during the second quarter of 2019, the country recorder unemployment rate of 192 percent compared to 18.2 percent during the same period in 2018. The trend of unemployment is high among the youths, university graduates, along with the females. However, the country’s balance of payment is significantly growing due to better terms of trade, which has assisted in reducing the costs associated with the importation of goods into the country. Moreover, export growth is also picking up while the FDI flow has remained stagnant.
Market growth rate
The current market growth rate of Jordan is below 1.94 percent. The declined growth rate is attributed to various factors, which include but are not limited to the high unemployment rate. The previous growth rate includes 2.12 percent in 2017, 2.00 percent in 2016and 2.39 percent in 2015.
Market opportunities
The country’s market opportunity involves investment in alternative and renewable energy, including wind and solar. The renewable energy market for machines and services is around $40 million. The percentage will enhance due to the implementation of a solar and new wind project in Jordan by the USA along with other foreign companies. Additionally, information communication and technology are another market opportunity for the country. The sector accounts for over 80,000 jobs comprising of 12 percent GDP.
Economic freedom
Jordan is among the freest state around the globe. Its financial freedom score is 66.5, thus ranking it as the 53rd most open economy in the 2019 index. The overall rating of the country has improved by about 1.6points. Its flow in the score for fiscal health surpassed that of labor freedom, judicial effectiveness along with monetary sovereignty. The country is ranked fourth among the 14 states of the GCC regions.
Trade barriers
Jordan trade barriers encompass tariff and non-tariff that the USA firms face when exporting goods to the country. The country has made significant reforms to enhance its trade and investment climate.
Government attitude to FDI
The government of Jordan is mostly open to foreign investment. It accepted WTO in 2000, and it has also fully implemented the Jordan FTA. Thus the government has a positive attitude towards FDI, and this has significantly encouraged foreign investment in the country.