EBRD praises Jordan’s measures to mitigate impact of Iran war
The European Bank for Reconstruction and Development (EBRD) said that Jordan has taken a number of measures to mitigate the impact of rising energy prices caused by the war in the Middle East. These measures included reducing travel by government employees, official delegations, and committees, encouraging energy conservation, and providing support to the agriculture and tourism sectors.
In its June Regional Economic Prospects Report, cited by Al Mamlaka TV, the bank forecast that Jordan’s economy will grow by 2.8% in 2027, with economic activity expected to improve if regional tensions ease. This follows growth of 2.8% in 2025 and a projected slowdown to 2.6% in 2026.
According to the report, Jordan’s economic growth accelerated from 2.5% in 2024 to 2.8% in 2025, supported by a recovery in tourism and stronger export performance despite continued uncertainty surrounding global trade policies. The bank also highlighted the launch of the Aqaba–Tartus trade corridor, which facilitates trade between the Red Sea and the Mediterranean, as well as measures such as exempting increases in shipping costs from customs duties and speeding up customs clearance procedures for essential goods to reduce supply chain disruptions.
The EBRD noted that Jordan is among the economies most affected by the consequences of the conflict in the Middle East. Lower tourism bookings and higher food and energy import costs have placed additional pressure on the country’s economy.
Inflation rose slightly to 1.9% by the end of March 2026, driven mainly by the sharp increase in global oil prices. Although Jordan faced temporary disruptions in natural gas supplies after the conflict erupted, the quick restoration of supplies and the availability of fuel reserves helped prevent significant disruptions to economic activity.
The report stated that Jordan’s budget deficit reached 5.2% of GDP in 2025, while total public debt, including government-guaranteed debt to the Social Security Corporation, climbed to 108% of GDP by the end of the year. The current account deficit widened to 5.6% of GDP due to higher imports, although foreign exchange reserves remained strong enough to cover more than seven months of imports.
The bank warned that Jordan’s heavy dependence on imports remains a key vulnerability in an environment of elevated global inflation. It added that a prolonged regional conflict could further harm tourism and investment and increase external imbalances.
Regionally, the report projected economic growth in the Southern and Eastern Mediterranean region to slow to 2.5% in 2026 from 3.1% in 2025 before recovering to 4.2% in 2027. Economic conditions were stronger at the start of 2026, with faster growth in Egypt and Morocco, continued recovery in Lebanon, and ongoing economic expansion in Jordan and Tunisia. In contrast, Iraq’s economy contracted because of lower oil production, which reduced exports and government revenues.
The report noted that tourism and remittances continued to provide important sources of foreign currency across the region, helping to offset the effects of higher import costs. However, escalating conflict in the Middle East has increased economic pressures by disrupting trade routes, raising energy prices, and fueling inflation. The largest downward revisions to growth forecasts since February 2026 were recorded in Lebanon and Iraq, which are among the countries most directly affected by the conflict.
The EBRD concluded that uncertainty remains high. If the conflict continues for an extended period, oil and gas prices could remain elevated, investment and tourism could weaken further, supply chains could face additional disruptions, and borrowing costs could rise, particularly in countries with high debt levels and significant financing needs. Governments across the region, including Jordan and Egypt, have responded by introducing measures to reduce energy consumption and shield households and businesses from rising fuel costs. The report noted that countries with stronger financial reserves and fiscal capacity are better positioned to withstand external shocks, while those more exposed to the conflict and financing pressures face greater economic risks.
The European Bank for Reconstruction and Development (EBRD) said that Jordan has taken a number of measures to mitigate the impact of rising energy prices caused by the war in the Middle East. These measures included reducing travel by government employees, official delegations, and committees, encouraging energy conservation, and providing support to the agriculture and tourism sectors.
In its June Regional Economic Prospects Report, cited by Al Mamlaka TV, the bank forecast that Jordan’s economy will grow by 2.8% in 2027, with economic activity expected to improve if regional tensions ease. This follows growth of 2.8% in 2025 and a projected slowdown to 2.6% in 2026.
According to the report, Jordan’s economic growth accelerated from 2.5% in 2024 to 2.8% in 2025, supported by a recovery in tourism and stronger export performance despite continued uncertainty surrounding global trade policies. The bank also highlighted the launch of the Aqaba–Tartus trade corridor, which facilitates trade between the Red Sea and the Mediterranean, as well as measures such as exempting increases in shipping costs from customs duties and speeding up customs clearance procedures for essential goods to reduce supply chain disruptions.
The EBRD noted that Jordan is among the economies most affected by the consequences of the conflict in the Middle East. Lower tourism bookings and higher food and energy import costs have placed additional pressure on the country’s economy.
Inflation rose slightly to 1.9% by the end of March 2026, driven mainly by the sharp increase in global oil prices. Although Jordan faced temporary disruptions in natural gas supplies after the conflict erupted, the quick restoration of supplies and the availability of fuel reserves helped prevent significant disruptions to economic activity.
The report stated that Jordan’s budget deficit reached 5.2% of GDP in 2025, while total public debt, including government-guaranteed debt to the Social Security Corporation, climbed to 108% of GDP by the end of the year. The current account deficit widened to 5.6% of GDP due to higher imports, although foreign exchange reserves remained strong enough to cover more than seven months of imports.
The bank warned that Jordan’s heavy dependence on imports remains a key vulnerability in an environment of elevated global inflation. It added that a prolonged regional conflict could further harm tourism and investment and increase external imbalances.
Regionally, the report projected economic growth in the Southern and Eastern Mediterranean region to slow to 2.5% in 2026 from 3.1% in 2025 before recovering to 4.2% in 2027. Economic conditions were stronger at the start of 2026, with faster growth in Egypt and Morocco, continued recovery in Lebanon, and ongoing economic expansion in Jordan and Tunisia. In contrast, Iraq’s economy contracted because of lower oil production, which reduced exports and government revenues.
The report noted that tourism and remittances continued to provide important sources of foreign currency across the region, helping to offset the effects of higher import costs. However, escalating conflict in the Middle East has increased economic pressures by disrupting trade routes, raising energy prices, and fueling inflation. The largest downward revisions to growth forecasts since February 2026 were recorded in Lebanon and Iraq, which are among the countries most directly affected by the conflict.
The EBRD concluded that uncertainty remains high. If the conflict continues for an extended period, oil and gas prices could remain elevated, investment and tourism could weaken further, supply chains could face additional disruptions, and borrowing costs could rise, particularly in countries with high debt levels and significant financing needs. Governments across the region, including Jordan and Egypt, have responded by introducing measures to reduce energy consumption and shield households and businesses from rising fuel costs. The report noted that countries with stronger financial reserves and fiscal capacity are better positioned to withstand external shocks, while those more exposed to the conflict and financing pressures face greater economic risks.
The European Bank for Reconstruction and Development (EBRD) said that Jordan has taken a number of measures to mitigate the impact of rising energy prices caused by the war in the Middle East. These measures included reducing travel by government employees, official delegations, and committees, encouraging energy conservation, and providing support to the agriculture and tourism sectors.
In its June Regional Economic Prospects Report, cited by Al Mamlaka TV, the bank forecast that Jordan’s economy will grow by 2.8% in 2027, with economic activity expected to improve if regional tensions ease. This follows growth of 2.8% in 2025 and a projected slowdown to 2.6% in 2026.
According to the report, Jordan’s economic growth accelerated from 2.5% in 2024 to 2.8% in 2025, supported by a recovery in tourism and stronger export performance despite continued uncertainty surrounding global trade policies. The bank also highlighted the launch of the Aqaba–Tartus trade corridor, which facilitates trade between the Red Sea and the Mediterranean, as well as measures such as exempting increases in shipping costs from customs duties and speeding up customs clearance procedures for essential goods to reduce supply chain disruptions.
The EBRD noted that Jordan is among the economies most affected by the consequences of the conflict in the Middle East. Lower tourism bookings and higher food and energy import costs have placed additional pressure on the country’s economy.
Inflation rose slightly to 1.9% by the end of March 2026, driven mainly by the sharp increase in global oil prices. Although Jordan faced temporary disruptions in natural gas supplies after the conflict erupted, the quick restoration of supplies and the availability of fuel reserves helped prevent significant disruptions to economic activity.
The report stated that Jordan’s budget deficit reached 5.2% of GDP in 2025, while total public debt, including government-guaranteed debt to the Social Security Corporation, climbed to 108% of GDP by the end of the year. The current account deficit widened to 5.6% of GDP due to higher imports, although foreign exchange reserves remained strong enough to cover more than seven months of imports.
The bank warned that Jordan’s heavy dependence on imports remains a key vulnerability in an environment of elevated global inflation. It added that a prolonged regional conflict could further harm tourism and investment and increase external imbalances.
Regionally, the report projected economic growth in the Southern and Eastern Mediterranean region to slow to 2.5% in 2026 from 3.1% in 2025 before recovering to 4.2% in 2027. Economic conditions were stronger at the start of 2026, with faster growth in Egypt and Morocco, continued recovery in Lebanon, and ongoing economic expansion in Jordan and Tunisia. In contrast, Iraq’s economy contracted because of lower oil production, which reduced exports and government revenues.
The report noted that tourism and remittances continued to provide important sources of foreign currency across the region, helping to offset the effects of higher import costs. However, escalating conflict in the Middle East has increased economic pressures by disrupting trade routes, raising energy prices, and fueling inflation. The largest downward revisions to growth forecasts since February 2026 were recorded in Lebanon and Iraq, which are among the countries most directly affected by the conflict.
The EBRD concluded that uncertainty remains high. If the conflict continues for an extended period, oil and gas prices could remain elevated, investment and tourism could weaken further, supply chains could face additional disruptions, and borrowing costs could rise, particularly in countries with high debt levels and significant financing needs. Governments across the region, including Jordan and Egypt, have responded by introducing measures to reduce energy consumption and shield households and businesses from rising fuel costs. The report noted that countries with stronger financial reserves and fiscal capacity are better positioned to withstand external shocks, while those more exposed to the conflict and financing pressures face greater economic risks.
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EBRD praises Jordan’s measures to mitigate impact of Iran war
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