IMF Executive Board Completes the First Review Under the Extended Fund Facility with Jordan
IMF News, July 1, 2024
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- IMF Executive Board Completes the First Review Under the Extended Fund Facility with Jordan
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- Published: July 1, 2024
Review completion and financing
- The Executive Board of the International Monetary Fund (IMF) completed the first review of Jordan’s program supported by the Extended Fund Facility (EFF).
- The completion of the review makes another SDR 97.784 million (about US$130 million) available to Jordan, out of the previously approved program size of SDR 926.370 million (about US$1.2 billion and equivalent to 270 percent of Jordan’s quota).
- The Executive Board’s decision on the first review was taken without a meeting under the lapse-of-time procedure.
Program performance and implementation
- All performance criteria and structural benchmarks for the first review were met.
- The EFF-supported program is described as off to a strong start, reflecting the authorities’ strong ownership of the program.
Economic outlook and resilience
- Jordan’s economy continues to show resilience despite external challenges, including the Israel–Gaza conflict and disruptions to trade in the Red Sea.
- Growth projections:
- Growth projected to moderate to 2.4 percent in 2024, after having reached 2.6 percent in 2023.
- Growth is expected to pick up pace in 2025, contingent upon the conflict ending and its impact fading.
- Inflation is low and reserve and reserve buffers are strong.
- Remaining risks and challenges:
- Unemployment remains high.
- The unsettled regional situation weighs on Jordan’s near-term outlook.
- Strong international support remains needed to support the authorities’ policy efforts and to help shoulder the cost of hosting a large number of Syrian refugees.
Fiscal and monetary policy stance
- Fiscal policy priorities:
- Continue to reduce public debt through a gradual fiscal consolidation.
- Expand targeted support to vulnerable households.
- Create more room for public investment.
- Monetary policy priorities:
- Maintain monetary and financial stability.
- Safeguard the exchange rate peg.
- The adverse impact of the conflict on growth and investment underscores the need to continue with, and to accelerate, structural reforms, to improve the viability of public utilities and to create a more dynamic private sector that can create more jobs and achieve the goals of the authorities’ Economic Modernization Vision.
Key economic indicators (2022–25)
- Output and Prices
- Real GDP growth: 2.4 (2022); 2.6 (2023); 2.9 (2024); (2025 entry blank in source table)
- Nominal GDP (US$ billions): 48.7 (2022); 50.9 (2023); 53.3 (2024); 56.1 (2025)
- Inflation 1/ (Consumer Price Index, annual average): 4.2 (2022); 2.1 (2023); (2024 and 2025 entries blank in source table)
- Government Finances (in percent of GDP)
- Central government fiscal operations — Revenue and grants 2/: 25.8 (2022); 25.3 (2023); 26.0 (2024); 26.3 (2025)
- Of which: grants: 2.3 (2022); 2.0 (2023); 1.9 (2024); 1.5 (2025)
- Expenditures 2/: 31.6 (2022); 30.5 (2023); 31.5 (2024); 31.8 (2025)
- Primary government balance (exc. grants, NEPCO and WAJ): -3.6 (2022); -2.7 (2023); -2.1 (2024); -1.6 (2025)
- Overall central government balance: -5.8 (2022); -5.2 (2023); -5.6 (2024); -5.5 (2025)
- Combined public sector balance 3/: -4.8 (2022); -4.5 (2023); -4.0 (2024); -3.1 (2025)
- Government gross debt 4/: 111.3 (2022); 114.1 (2023); 113.7 (2024); 114.3 (2025)
- Government gross debt, net of SSC holdings of govt. debt 4/: 88.8 (2022); 89.5 (2023); 89.2 (2024); 88.3 (2025)
- Money and Credit
- Broad money (percent change): 5.5 (2022); 4.8 (2023); 5.3 (2024); (2025 entry blank in source table)
- Credit to the private sector (percent change): 8.0 (2022); 1.7 (2023); 4.1 (2024); 6.0 (2025)
- Balance of payments
- Current account (in percent of GDP): -7.8 (2022); -3.5 (2023); -5.0 (2024)
- FDI (in percent of GDP): 1.4 (2022); 1.8 (2023)
- Gross reserves (in months of imports): 6.8 (2022); 7.3 (2023); 7.1 (2024)
- In percent of Reserve Adequacy Metric: 103 (2022); 104 (2023); 102 (2024); 99 (2025)
- Notes and definitions included in source:
- 1/ Consumer Price Index (annual average).
- 2/ Includes the programmed amount of fiscal measures that are needed to meet fiscal targets under the EFF arrangement.
- 3/ Sum of the primary central government balance (exc. grants and net transfers to NEPCO-electricity company and WAJ-water company) and the net loss of NEPCO, WAJ and water sector distribution companies.
- 4/ Government's direct and guaranteed debt (including NEPCO and WAJ debt). SSC stands for Social Security Corporation.
Press Release No. 24/251, IMF Communications Department, July 1, 2024.