Iraq crisis worsens Jordan’s economic woes

27 Aug 2014   Jordan

– As violence escalates in Iraq, neighbouring Jordan is facing a dire economic situation. Trade between the two countries, once a pillar of the Jordanian economy, has dropped dramatically. “The situation is disastrous, as our exports have almost stopped,” said Nabeel Rumman, president of the Association of Investors in the Free Zone. Jordanian and foreign investors are not taxed in Jordan’s free zones to encourage trade. Through the free zones, companies were¬†exporting¬†$120m worth of cars and other goods each month to Iraq, according to Rumman, who estimated that the group’s monthly losses total approximately $78m. “Only a few investors have shipped basic things like food and medicine [to Iraq] during the past couple of months,” Rumman told Al Jazeera. Iraq previously imported 20 percent of Jordan’s total exports , and in 2013, exports from Jordan to Iraq totalled approximately $1.25bn, according to the Jordan Chamber of Industry […]

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