Ammon News - The International Monetary Fund (IMF) believes that Jordan's economy is poised to achieve stronger growth in 2027, reaching 3.1%, contingent on the launch of major investment projects, after maintaining projected growth of 2.7% in 2026, despite ongoing regional tensions and the repercussions of the war in the Middle East.

The IMF Executive Board completed the fifth review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) arrangements with Jordan, making available about US$134 million under the EFF and US$54 million under the RSF to support the authorities’ economic program.

The IMF noted that the war in the Middle East caused temporary disruptions in energy markets, reduced tourism activity, and increased shipping costs. However, most sectors of Jordan's economy continued operating normally, while some benefited from stronger external demand and improved export prices.

The Fund emphasized that Jordan has maintained macroeconomic stability despite strong headwinds from the war in the Middle East, supported by prudent economic policies, continued reform implementation, and robust international support. Economic growth reached 2.8% in 2025, up from 2.6% in 2024, while inflation remained low at 1.8% and foreign reserves stayed at strong levels.

The IMF highlighted the strong performance of the economic reform program, noting that all quantitative performance criteria and structural reform benchmarks under the fifth review were successfully met. Structural reforms remain essential for achieving stronger and more resilient growth by improving the business environment, enhancing competition, increasing labor market flexibility, and reducing the costs of transitioning into the formal economy, thereby supporting private sector-led job creation.

The Fund also stressed the importance of continuing gradual fiscal consolidation to reduce public debt, improve public spending efficiency, lower losses in public utilities, preserve social and development spending, and ensure the long-term financial sustainability of the pension system.

IMF projections indicate a gradual improvement in economic indicators over the coming years. Nominal GDP is expected to rise to JOD 51.2 billion by 2028, while economic growth accelerates to 3.1% in 2027, supported by major investment projects.

The Fund also expects the budget deficit and public debt to continue declining gradually, while foreign direct investment increases from 3.1% of GDP in 2026 to 3.4% in 2028, providing additional support for economic and investment activity.

On monetary policy, the IMF stated that current policy remains appropriately geared toward maintaining financial stability and supporting Jordan's fixed exchange rate regime. The Fund praised the resilience of Jordan's banking sector and ongoing efforts to strengthen systemic risk analysis, financial sector supervision, and crisis management.

The IMF further noted that the Resilience and Sustainability Facility program remains on track following completion of the required reform for the second review. Continued implementation of reforms under the program is expected to address long-term vulnerabilities and strengthen external stability.

Finally, the IMF underscored the importance of sustained and timely international support for Jordan to help advance its development goals, manage the costs of hosting large numbers of refugees, enhance resilience to shocks, and achieve stronger, more inclusive, private sector-led growth.