CEIC Macro Watch Global #40 - January 29, 2015
The extraction of phosphate and potash ores, mainly used in fertilizer production, is an integral part of the Jordanian mining and quarrying sector, and is of international significance as the country is one of the world’s largest producers. Phosphate production reached 746.2 thousand tons in October 2014 – its highest level in reported history (going back to 1975). Potash volumes remained stable at an average of 170 thousand tons per month from the beginning of 2014, hitting 182.9 thousand tons in October and closing in on the record 2011 annual average of 188 thousand tons.
Despite having registered a mostly negative contribution to gross domestic product (GDP) growth for the period 2012-2013, the mining and quarrying industry has historically been an important driver of output growth in the country. In the third quarter of 2014, mining contributed 0.4% to a real GDP growth rate of 3.1% year-on-year. While global demand for mineral products faces major risks amid a strong US dollar and a downtrend in commodity prices in general, should international conditions prove favourable, phosphate and potash production, and the related fertilizer exports, will continue to be important sources of income for the Jordanian economy in 2015.
By Stoyan Kiryazov in Bulgaria - CEIC AnalystDiscuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription.
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