Cherkas: National Economy Grows by 2.9% Thanks to Proactive Government Measures

SadaNews Economy - The Governor of the Central Bank of Jordan, Dr. Adel Cherkas, confirmed that the national economy achieved a real growth of 2.9% during the first quarter of 2026, continuing a clear upward trajectory in economic performance, following a growth of 2.7% in the first quarter of 2025 and 2.5% in the same period of 2024.

Cherkas stated in a statement to the Jordan News Agency (Petra) today, Tuesday, that this improvement reflects the resilience of the Jordanian economy and its ability to adapt to rapid regional and international challenges, noting that the government played a pivotal role in supporting this trajectory through a wide range of economic decisions and measures taken during the recent period, both before and during the regional developments, including accelerating the implementation of economic programs, enhancing the business environment, and supporting vital sectors.

He pointed out that the government settled overdue payments exceeding 280 million dinars to institutions and companies in the private sector, which contributed to enhancing liquidity in the market, supporting business continuity, and stimulating economic activity.

He added that the significance of this performance is enhanced when compared to international institutions' estimates, as the World Bank anticipated a growth of about 2.6% for the Jordanian economy for 2026, while the results of the first quarter exceeded these estimates, reflecting the robustness of the economic foundations and the effectiveness of ongoing policies and reforms.

He explained that this growth was not limited to a single sector; rather, it was broad-based and included various productive and service sectors, indicating a gradual improvement in the structure of the national economy and an increase in the role of value-added sectors.

Cherkas noted that the manufacturing sector continued to lead economic growth, recording a growth of 5.3%, contributing nearly one-third of total growth, while the agriculture sector registered a strong growth of 6.8%, and the mining and quarrying sector recorded a growth of 4.7%, reflecting an improvement in the performance of commodity sectors and strengthening their role in supporting growth.

Service sectors also continued their positive performance, with the wholesale and retail trade sector recording a growth of 3.2%, the transportation and storage sector at 3.1%, and financial and insurance activities at 2.9%, along with an improvement in the performance of several other sectors, reflecting a general improvement in economic activity.

Cherkas indicated that the contribution of productive sectors to growth witnessed a notable improvement, exceeding 55% of total growth during the first quarter of 2026, compared to an average of about 33.8% during the period 2015-2021, reflecting a gradual shift towards a more productive and diverse economy.

He affirmed that these results come within the framework of the cumulative impact of the "Economic Modernization Vision and its Executive Program for 2026–2029,” which focused on raising productivity, enhancing the competitiveness of sectors, improving the investment environment, and expanding the productive base, all of which have clearly reflected on the performance of various economic sectors.

He explained that the government dealt with the repercussions of recent regional developments with efficiency and speed, through measures that included ensuring the security of energy supply, facilitating trade and supply chain movements, and supporting the most affected sectors, especially the tourism and industrial sectors, alongside continuing social protection programs aimed at the most needy families, contributing to mitigating the impact of external shocks on the local economy.

He added that macroeconomic indicators reflect a high level of stability, as the Kingdom's foreign currency reserves at the Central Bank reached approximately 27.4 billion dollars, covering about 9.5 months of goods and services imports, while the inflation rate stabilized at moderate levels of 1.88% during the first five months of 2026.

He noted that the national economy also benefited from the continued flow of external income sources, as remittances from Jordanian workers abroad increased by 13.3% to reach about 1.6 billion dollars during the first four months of the year, while national exports rose by 1.6% to reach about 3 billion dollars during the first quarter, and tourism revenues amounted to approximately 2.8 billion dollars during the first five months of the year, despite the regional challenges facing the sector.

Cherkas said that these combined indicators reflect the Jordanian economy's ability to diversify its income sources and strengthen its external resilience, contributing to supporting macroeconomic stability and sustaining growth.

He emphasized that the achievements in the first quarter of 2026 are not just a growth number, but a result of the integration of economic policies and structural reforms within the Economic Modernization Vision, and government decisions supporting economic activity, alongside efforts to enhance overall stability, pointing out that the continued expansion of the growth base and the improvement in the performance of productive sectors enhance optimism about the prospects of the Jordanian economy in the coming period, despite the ongoing uncertainty in the regional and international environment.