Ammon News - Jordan’s economy is projected to grow by 2.8% this year and at the same rate in 2027, according to a report by the United Nations Economic and Social Commission for Western Asia (ESCWA). The report said inflation in the Kingdom is expected to ease from 2.4% this year to 1.8% in 2027.

ESCWA forecast Jordan’s exports to rise from 3.8% in 2025 to 4.8% this year and 6.5% in 2027, outperforming several middle-income countries, including Tunisia, Egypt, Algeria, Iraq, and Palestine, according to the commission’s classification.

The report, titled "Macroeconomic Outlook for the Arab Region," said the Arab region is witnessing a gradual economic recovery despite mounting challenges, and the regional growth is projected to rise from 2.9% in 2025 to 3.7% this year. It noted that global uncertainty, driven by escalating geopolitical tensions and tightening financial pressures, is weighing on efforts to achieve sustainable and inclusive growth.

Inflation across the Arab region is expected to decline from 8.2% in 2025 to 5.4% by 2027, supported by lower commodity prices and easing supply chain disruptions. Total regional exports are projected to grow, driven by stronger non-oil exports.

High-income Arab countries are forecast to record GDP growth of 4.2% in 2026, up from 3.3% in 2025, supported by economic diversification efforts. Meanwhile, middle-income Arab countries are expected to see growth rise from 2.8% in 2025 to 3.3% in 2026, with gradual improvement despite persistent debt and inflation challenges. In contrast, low-income countries continue to face acute fiscal and humanitarian pressures, with only limited recovery projected over the next two years following a 0.9% contraction in 2025.

The report highlighted humanitarian challenges in Gaza Strip, estimating reconstruction costs at nearly $70 billion amid extensive loss of life and destruction affecting about 78% of buildings.

ESCWA urged Arab countries to continue diversifying their economies, reduce reliance on hydrocarbons, and invest in human capital, technology, and digital transformation. It also called for improved public financial management and stronger domestic revenue mobilization, stressing aligning aid and investment with national priorities, particularly in conflict-affected countries, and enhancing labor market resilience to generate sustainable jobs amid rapid technological change.

ESCWA is one of the five regional commissions of the United Nations, mandated to support comprehensive and sustainable economic and social development in Arab states and promote regional integration. Petra