The last Article IV Executive Board Consultation was on March 25, 2020. Listed below are items related to Jordan.

Key Messages of the Staff Report- Conclusion of the IMF’s 1st EFF Review under the EFF with Jordan | Report

Available in Arabic

  • On December 14, 2020, the IMF Executive Board completed the 1st Review under Jordan’s Extended Fund Facility Arrangement (EFF). Completion of the review released Fund financing in the amount of around US$148 million, bringing total IMF disbursements to Jordan in 2020 to US$689 million; this includes provision of US$400 million of emergency financing in May under the Rapid Financing Instrument. An additional amount of about US$1 billion is expected to be disbursed over the next three years.
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  • The combination of containment measures and timely fiscal and monetary stimulus policies (supported by the international community) helped mitigate the health and economic impact of COVID-19. Nevertheless, the shock has taken a major toll on Jordan’s economy, with unemployment rising to a record high of 24 percent, and external and fiscal deficits widening significantly. Despite these difficult circumstances, the authorities continued to advance critical reforms, including institutionalizing the drive against tax evasion; improving tax administration; and strengthening the cash transfer program; while successfully maintaining external market access.
  • While there is considerable uncertainty around the economic forecast, staff expects real GDP to decline by 3 percent in 2020; and increase by 2.5 percent in 2021, reflecting a gradual recovery as the pandemic abates.
  • The Jordanian authorities remain committed to the objectives of the program agreed at the time of its approval in March 2020, i.e. to preserve medium-term macroeconomic stability; improve the efficiency of public finances; and support inclusive growth and job creation by advancing reforms to the labor market, electricity sector, business climate, and governance and transparency, in a manner that effectively protects the most vulnerable.
  • Taking into consideration Jordan’s challenges in coping with the impact of COVID-19 shock, the program for 2021 has been recalibrated. Specifically, the fiscal and foreign exchange reserve targets have been relaxed to ensure adequate resources to address continued health and economic challenges; and the program’s flexibility to deal with higher-than-expected COVID spending needs has been enhanced. Moreover, structural conditionality has been rephased to better align it with the authorities’ implementation capacity. These changes will help the authorities’ efforts to limit “scarring” (long-term economic damage from the crisis) and support the recovery.
  • The authorities have submitted a 2021 budget to Parliament that is consistent with the program and strikes an appropriate balance between the need to support the economy and ensuring debt sustainability. The authorities are making efforts to reduce tax evasion/avoidance, broaden the tax base, and improve the efficiency of public expenditures, to create space for critical public investment and targeted social spending to protect the most vulnerable.
  • Robust donor support, in line with commitments, including to support 1.3 million Syrian refugees, will be critical to enable Jordan to successfully navigate the crisis. Donor support will need to be stepped up in the event of a more protracted recovery.

At a Glance

  • 2021 Projected Real GDP (% Change) : 3.4
  • 2021 Projected Consumer Prices (% Change): 1.4
  • Country Population: 10.209 million
  • Date of Membership: August 29, 1952
  • Article IV/Country Report: April 16, 2020
  • Outstanding Purchases and Loans (SDR): 720.42 million (December 31, 2020)
  • Special Drawing Rights (SDR): 12.99 million
  • Quota (SDR): 343.1 million
  • Number of Arrangements since membership: 10

Country Data

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