Ammon News - The European Bank for Reconstruction and Development (EBRD) said that Jordan's economic growth proved resilient in 2024 despite the wars in Gaza and Lebanon weighing on business and consumer confidence and lower room for public spending due to decreasing revenues.

According to the Bank's Regional Economic Prospects report, which reviewed by Ammon, the Bank noted that a quick recovery in tourism receipts in the second half of the year helped support growth, and the government’s commitment to fiscal discipline and progress on structural reforms further supported economic resilience and preserved market confidence.

In the meantime, unemployment remained high, standing at 21.4 per cent by the end of 2024 while inflation stayed low despite a slight uptick to 2.1 per cent in February 2025.

The Central Bank of Jordan maintained its policy rate since September 2024, mirroring the decisions of the Federal Reserve as part of its effort to preserve the currency peg. Foreign exchange reserves amounted to US$21.1 billion, covering around eight months of imports.

Regional instability affected the external position, with the current account widening to an average of 5.9 per cent of GDP in 2024. Gross general government debt (including guaranteed debt) reached 115 per cent of GDP in December 2024.

In 2025, growth is expected to benefit from a recovery in tourism and the re-opening of the Syrian market to Jordanian businesses, but downside risks from uncertainty around US foreign aid and trade policies weigh on the outlook for investment and growth. On balance, growth is expected to reach 2.2 per cent in 2025 up to 2.4 per cent in 2026, subject to restoration of regional stability.