International Monetary Fund: The Jordanian Economy is Steadily on the Right Track

SadaNews - The International Monetary Fund announced that it has reached a staff-level agreement with the Jordanian government regarding the fifth review of the economic reform program supported by the Extended Fund Facility arrangement and the second review under the Resilience and Sustainability Facility. Cesar Sira, head of the IMF team, confirmed in a statement issued today that the Jordanian economy continues to demonstrate resilience, supported by the Jordanian government’s commitment to prudent macroeconomic policies, along with strong international support, with real GDP growth reaching 2.8% in 2025 and growth momentum being strengthened at the beginning of 2026. He added that the Central Bank of Jordan succeeded in keeping inflation rates below 2%, thanks to its steadfast commitment to maintaining monetary stability, backed by a large foreign currency reserve, while the banking sector remained robust, enjoying comfortable levels of liquidity and capital. He pointed out the measures and actions taken by the Jordanian government to deal with the regional war atmosphere and mitigate its economic impact, including rising energy prices and the disruption of tourism activities while maintaining prudent fiscal and monetary policies. He indicated that these measures included actions to protect energy security, facilitate supply chains, ensure adequate liquidity in financial markets, and provide targeted support to the most affected groups. He confirmed that the program's performance remains strong despite the challenging external environment arising from the war in the Middle East, as all quantitative performance criteria for the fifth review under the Extended Fund Facility were achieved with comfortable margins, and all structural criteria are on the right track. He highlighted the Jordanian government's commitment to reducing public debt to 80% of GDP by 2028, through enhancing revenues and expenditure efficiency. Completing the fifth review under the Extended Fund Facility arrangement will provide approximately $140 million, and completing the second review under the Resilience and Sustainability Facility will allow for the disbursement of about $57 million. He confirmed that structural reforms remain a key element in supporting a dynamic private sector capable of achieving stronger growth and providing job opportunities, noting the initiatives taken by the government to improve the business environment, enhance competition and labor market flexibility, and support the social safety net. He stated that the Central Bank of Jordan, with support from the World Bank, issued detailed executive regulations on climate-related disclosures and reports, in line with the Basel Committee on Banking Supervision's guidelines of 2022, and aligned with international sustainability standards. He mentioned that the agreement on the fifth review was the result of in-depth discussions over the past two weeks conducted by a team of IMF experts, both in person and virtually, with the Minister of State for Economic Affairs, Mohannad Shahadeh, Minister of Finance, Dr. Abdul Hakim Al Shbaili, Minister of Planning and International Cooperation, Zeina Toukan, and the Governor of the Central Bank of Jordan, Dr. Adel Sharqis.