Jordan and the IMF: Fourth Review as a test of reform progress
The International Monetary Fund (IMF) mission began its fourth review of Jordan’s programme under the Extended Fund Facility (EFF) in Amman this week. This review is very important for the Kingdom. It will not only allow Jordan to receive around $134 million, but it will also test the government’s commitment to reforms at a time of growing economic and social pressures.
The agreement was signed in January 2024 with a total value of $1.3 billion. Since then, Jordan has received almost $600 million. The IMF has said many times that the programme is “on track”. This shows that Jordan has been managing its economy carefully, keeping control over spending, and moving forward with gradual reforms. For Jordan, which faces problems like high unemployment, limited resources, and growing demand for services, IMF support is not just about money. It is also about building investor confidence and protecting economic stability.
This fourth review comes while Jordan’s economy is performing better than expected. Growth in 2024 reached 2.5 per cent, inflation stayed low and stable, and the Central Bank’s reserves rose above $20 billion, which gives protection against external shocks. The current account deficit is expected to remain around 6 per cent of GDP. These results show that the government has managed to steer the economy in a difficult global and regional environment marked by political instability, slow global growth, and volatile energy markets.
But challenges remain. Public debt is still very high and puts pressure on government spending, making it hard to increase investment or social support. The IMF has praised Jordan for trying to reduce debt and control spending, but success will depend on steady implementation and acceptance by the public. Another urgent issue is jobs. More opportunities are needed, especially for women and youth, who remain underrepresented in the labour market. Without real progress on employment, social pressures may put reforms at risk.
Jordan’s reform plan has gained extra support from the Resilience and Sustainability Facility (RSF), which was approved in June for $700 million over 30 months. This programme is different from normal IMF lending because it focuses on long-term resilience. It aims to strengthen the energy and water sectors, improve public finance, and prepare for future health crises. The water sector is especially important because it is both an economic challenge and a national security issue. Fixing it could make a big difference for growth and stability.
The IMF’s positive review gives Jordan more credibility. But to keep progress moving, the government needs strong political will and public support. Balancing reduced spending with the need for more investment and jobs will not be easy. Risks from outside the country, such as energy price changes and regional conflicts, also remain.
In the end, the fourth review is not only about receiving new funds. It is more about showing continuity and commitment. Jordan’s ability to prove progress on debt control, reforms, and resilience will influence how investors, donors, and citizens see the economy. If the review succeeds, it will strengthen Jordan’s position as a stable and reform-minded economy in an unstable region, while keeping the focus on long-term, inclusive growth.
The International Monetary Fund (IMF) mission began its fourth review of Jordan’s programme under the Extended Fund Facility (EFF) in Amman this week. This review is very important for the Kingdom. It will not only allow Jordan to receive around $134 million, but it will also test the government’s commitment to reforms at a time of growing economic and social pressures.
The agreement was signed in January 2024 with a total value of $1.3 billion. Since then, Jordan has received almost $600 million. The IMF has said many times that the programme is “on track”. This shows that Jordan has been managing its economy carefully, keeping control over spending, and moving forward with gradual reforms. For Jordan, which faces problems like high unemployment, limited resources, and growing demand for services, IMF support is not just about money. It is also about building investor confidence and protecting economic stability.
This fourth review comes while Jordan’s economy is performing better than expected. Growth in 2024 reached 2.5 per cent, inflation stayed low and stable, and the Central Bank’s reserves rose above $20 billion, which gives protection against external shocks. The current account deficit is expected to remain around 6 per cent of GDP. These results show that the government has managed to steer the economy in a difficult global and regional environment marked by political instability, slow global growth, and volatile energy markets.
But challenges remain. Public debt is still very high and puts pressure on government spending, making it hard to increase investment or social support. The IMF has praised Jordan for trying to reduce debt and control spending, but success will depend on steady implementation and acceptance by the public. Another urgent issue is jobs. More opportunities are needed, especially for women and youth, who remain underrepresented in the labour market. Without real progress on employment, social pressures may put reforms at risk.
Jordan’s reform plan has gained extra support from the Resilience and Sustainability Facility (RSF), which was approved in June for $700 million over 30 months. This programme is different from normal IMF lending because it focuses on long-term resilience. It aims to strengthen the energy and water sectors, improve public finance, and prepare for future health crises. The water sector is especially important because it is both an economic challenge and a national security issue. Fixing it could make a big difference for growth and stability.
The IMF’s positive review gives Jordan more credibility. But to keep progress moving, the government needs strong political will and public support. Balancing reduced spending with the need for more investment and jobs will not be easy. Risks from outside the country, such as energy price changes and regional conflicts, also remain.
In the end, the fourth review is not only about receiving new funds. It is more about showing continuity and commitment. Jordan’s ability to prove progress on debt control, reforms, and resilience will influence how investors, donors, and citizens see the economy. If the review succeeds, it will strengthen Jordan’s position as a stable and reform-minded economy in an unstable region, while keeping the focus on long-term, inclusive growth.
The International Monetary Fund (IMF) mission began its fourth review of Jordan’s programme under the Extended Fund Facility (EFF) in Amman this week. This review is very important for the Kingdom. It will not only allow Jordan to receive around $134 million, but it will also test the government’s commitment to reforms at a time of growing economic and social pressures.
The agreement was signed in January 2024 with a total value of $1.3 billion. Since then, Jordan has received almost $600 million. The IMF has said many times that the programme is “on track”. This shows that Jordan has been managing its economy carefully, keeping control over spending, and moving forward with gradual reforms. For Jordan, which faces problems like high unemployment, limited resources, and growing demand for services, IMF support is not just about money. It is also about building investor confidence and protecting economic stability.
This fourth review comes while Jordan’s economy is performing better than expected. Growth in 2024 reached 2.5 per cent, inflation stayed low and stable, and the Central Bank’s reserves rose above $20 billion, which gives protection against external shocks. The current account deficit is expected to remain around 6 per cent of GDP. These results show that the government has managed to steer the economy in a difficult global and regional environment marked by political instability, slow global growth, and volatile energy markets.
But challenges remain. Public debt is still very high and puts pressure on government spending, making it hard to increase investment or social support. The IMF has praised Jordan for trying to reduce debt and control spending, but success will depend on steady implementation and acceptance by the public. Another urgent issue is jobs. More opportunities are needed, especially for women and youth, who remain underrepresented in the labour market. Without real progress on employment, social pressures may put reforms at risk.
Jordan’s reform plan has gained extra support from the Resilience and Sustainability Facility (RSF), which was approved in June for $700 million over 30 months. This programme is different from normal IMF lending because it focuses on long-term resilience. It aims to strengthen the energy and water sectors, improve public finance, and prepare for future health crises. The water sector is especially important because it is both an economic challenge and a national security issue. Fixing it could make a big difference for growth and stability.
The IMF’s positive review gives Jordan more credibility. But to keep progress moving, the government needs strong political will and public support. Balancing reduced spending with the need for more investment and jobs will not be easy. Risks from outside the country, such as energy price changes and regional conflicts, also remain.
In the end, the fourth review is not only about receiving new funds. It is more about showing continuity and commitment. Jordan’s ability to prove progress on debt control, reforms, and resilience will influence how investors, donors, and citizens see the economy. If the review succeeds, it will strengthen Jordan’s position as a stable and reform-minded economy in an unstable region, while keeping the focus on long-term, inclusive growth.
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Jordan and the IMF: Fourth Review as a test of reform progress
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