A Methodological Update That Enhances Data Accuracy Without Changing the Size of the Economy

BDO Advisory – Economic Insights, December 2025
The Department of Statistics has introduced a new methodology for calculating Jordan’s Gross Domestic Product (GDP), following an update of the base year from 2016 to 2023. This revision is part of routine statistical procedures aimed at improving the accuracy of economic indicators and ensuring they better reflect a rapidly evolving economic landscape.

At the heart of the update lies a fundamental principle in national accounts: real GDP is calculated by valuing production quantities using the prices of a fixed base year. Previously, estimates were tied to 2016 prices—a practice that becomes increasingly misaligned with reality over time as prices shift and economic activity diversifies. By adopting 2023 as the new base year, production levels for 2023 are now valued using more current price structures, providing a truer picture of today’s economy.

Key Outcomes of the Revision

• The revised estimate for Jordan’s GDP in 2023 has increased by approximately 3.6 billion dinars, bringing the total to around 39.8 billion dinars.
• This increase is purely methodological and does not indicate real economic expansion.
• Per capita GDP rose from roughly 3,000 dinars to around 3,300 dinars, reflecting updated valuation methods rather than tangible improvements in living standards.

Potential Indirect Effects
Although the update does not translate into immediate benefits for household welfare, it does generate several important advantages:

• Improved accuracy of economic indicators and a more realistic depiction of economic performance.
• Stronger international rankings and perceptions of the Jordanian economy by global institutions.
• Potential improvements in financial ratios—such as the debt-to-GDP ratio—that could support lower borrowing costs and enhance Jordan’s ability to attract future investment.

This revision is fully aligned with global statistical standards, as most countries periodically update their GDP base year to keep pace with structural changes in their economies. Disclaimer: This analysis is based on publicly available data from the Department of Statistics and reputable news sources. It does not represent a political position or an evaluation of economic policies; rather, it aims to explain the methodological update and its implications.