Problems of inflation and unemployment are the most important problems that affect the growth of Jordanian economy. This paper I will present the concept of both inflation and unemployment in general as stated in previous studies and some economic theories that deal with these problems and their impact on GAP . According to Jordan economy profile in mind index, Cordon’s economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources, underlying the government’s heavy reliance on foreign assistance. Other economic challenges for the government include chronic high rates of poverty, unemployment, inflation, and a large budget deficit.Since assuming the throne in 1999, King ABDULLAH has implemented significant economic reforms, such as opening the trade regime, propagating state-owned companies, and eliminating most fuel subsidies, which in the past few years have spurred economic growth by COPY RIGHT 0 2013 Institute of Interdisciplinary Business Research 317 attracting foreign investment and creating some Jobs. The global economic slowdown, however, has depressed Cordon’s GAP growth.Export-oriented sectors such as manufacturing, mining, and the transport of re-exports have been hit the hardest. The Government approved two supplementary budgets in 2010, but Economics By ashlars additional revenue to cover excess spending. The budget deficit is likely to remain high, at 5-6% of GAP, and Amman likely will continue to depend heavily on foreign assistance to finance the deficit in 2011. Cordon’s financial sector has been relatively isolated from the international financial crisis because of its limited exposure to overseas capital markets.
