Ammon News - The International Monetary Fund (IMF) Executive Board completed the fourth review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF) arrangements with Jordan, providing the Jordanian authorities with immediate access to the equivalent of about US$130 million under the EFF and about US$110 million under the RSF to support the Kingdom's economic program.

This payment brings total disbursements under the arrangement to approximately $733 million.

In a statement issued Saturday, the IMF said: "Jordan’s economy remains resilient, supported by sound macroeconomic policies and strong international backing. Growth accelerated to 2.7 percent in the first half of 2025 and is expected to reach 3 percent in the coming years, aided by major investment projects, deeper regional integration, and sustained implementation of structural reforms."

"Inflation stays anchored at about 2 percent, and the current account deficit is projected to narrow to below 5 percent of GDP over the medium term. The banking sector is stable, and international reserves are strong," the IMF added.

The IMF noted: "Fiscal performance remains in line with program targets, with robust revenue collection and current spending discipline. The authorities are committed to reducing public debt to 80 percent of GDP by 2028 through gradual fiscal consolidation and further actions to lower the losses of public utilities, while protecting social and development spending."

The IMF indicated that : "The authorities are determined to step up the pace of structural reforms to achieve stronger growth and generate more jobs. Reforms are advancing to boost investment, foster competition, improve labor market flexibility, and strengthen the social safety net, alongside digitalization of government services."

Progress under the RSF continues, with measures addressing vulnerabilities in water and electricity sectors and enhancing health emergency preparedness. The two RSF Reform Measures scheduled for this review have been completed, the bank pointed out.

Following the Executive Board discussion, Kenji Okamura, Deputy Managing Director and Chair, made the following remarks:

"Jordan’s continued macroeconomic stability and resilience amid persistent external headwinds are a testament to the authorities’ steadfast pursuit of sound policies, aided by strong international support. Growth continues to recover, inflation remains low, and reserve buffers are strong. In the context of lingering regional tensions and global uncertainty, the authorities continued commitment to sound fiscal and monetary policies to safeguard macroeconomic stability is important.

"The authorities continue to make progress on gradual and growth-friendly fiscal consolidation. The recalibrated fiscal stance for 2026 is appropriate. Gradual fiscal consolidation, supported by the authorities’ Medium-Term Revenue Strategy and enhanced spending efficiency would help to place public debt on a downward path, while protecting social and capital spending. Efforts to maintain the long-term financial sustainability of the pension system and improve the efficiency and financial viability of public utilities are crucial.

"Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that continues to serve Jordan well. Jordan's banking sector remains healthy, and the central bank continues to strengthen its systemic risk analysis, financial sector oversight, and crisis management. Ongoing efforts to further strengthen the effectiveness of the AML/CFT framework are welcome.

"Accelerated structural reforms are crucial to create a dynamic and resilient private sector and foster job-rich growth. The authorities are focused on measures to improve the business environment, promote competition, enhance labor market flexibility to address youth unemployment and low female labor force participation, and attract private investment. Strong and timely donor support remains essential to help Jordan navigate the challenging external environment and meet its development objectives, while shouldering the cost of hosting a large number of refugees.

"The solid progress of implementing the reform measures under the Resilience and Sustainability Facility will help to support the authorities’ efforts to address long-term economic vulnerabilities and strengthen Jordan’s balance of payments stability."