April 17, 2025
PRESS OFFICER: Angham Al Shami
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Amman: A staff team from the International Monetary Fund (IMF), led by Ron van Rooden, visited Amman during April 6–17, 2025, for discussions on the third review under the arrangement under the IMF’s Extended Fund Facility (EFF), which was approved by the IMF’s Executive Board on January 10, 2024 (Press Release). Discussions were also held on an arrangement under the Resilience and Sustainability Facility (RSF). At the conclusion of the mission, Mr. van Rooden issued the following statement:
“We are pleased to announce that the IMF team and the Jordanian authorities reached a staff-level agreement on the third review of the authorities’ economic reform program supported by the EFF arrangement, approved in January 2024. Program performance continues to be strong, despite a challenging external environment. All quantitative performance criteria for the third review were met and steady progress is being made toward achieving the program’s overall objectives, including strong progress toward meeting the structural benchmarks for this and future reviews. The agreement is subject to approval by the IMF’s management and the Executive Board. The completion of this review will make SDR 97.784 million (about US$130 million) available, out of the approved program size of SDR 926.370 million (about US$1.2 billion).
“Jordan’s economy continues to show resilience and macro-economic stability has been maintained, despite considerable external headwinds from the conflicts in Gaza and Lebanon and heightened uncertainty, thanks to authorities’ steady pursuit of sound macro-economic policies and international support. Growth slowed somewhat, but still reached 2.5 percent and inflation remained low, at less than 2 percent in 2024. The budget deficit target was met, as strong measures offset the loss in revenues due to lower domestic demand and lower prices of key export commodities. The current account deficit widened somewhat to 5.9 percent of GDP, in part reflecting lower tourism receipts.
“Despite increased global uncertainty, including as a result of higher trade tensions and continued conflicts in the region, growth in Jordan has started to pick up pace and is projected to reach 2.7 percent in 2025, as domestic activity and tourism are recovering and investment inflows have increased. The current account deficit is expected to be contained at 5.5 percent of GDP, with higher tourism receipts offsetting higher imports and possible adverse effects on exports from higher trade barriers. Inflation is expected to remain low, at just over 2 percent, reflecting the CBJ’s unwavering commitment to maintaining monetary stability. The CBJ remains firmly committed to the exchange rate peg to the U.S. dollar, which is supported by strong international reserves. Meanwhile, the banking sector continues to demonstrate resilience, with strong capitalization and sound financial health. Barring additional shocks, growth is expected to pick up pace further in the coming years, to over 3 percent, fueled by several large investment projects, including the Aqaba Amman Conveyor project, while deeper regional economic integration, notably with Syria, Lebanon, and Iraq, could further enhance growth prospects.
“The authorities remain committed to their fiscal policy anchor of placing public debt on a steady downward path, while protecting priority social and development spending. To achieve this, and to cement the progress made in the last few years, the authorities are committed to continuing efforts at mobilizing revenues, improving spending efficiency, and ensuring the financial viability and efficiency of public utilities and the social security corporation (SSC). Steady fiscal consolidation will continue in 2025–28, aiming to bring public debt to 80 percent of GDP by 2028.
“The authorities are determined to step up the pace of structural reforms to achieve stronger growth and generate more jobs, which is particularly important given that unemployment remains high, particularly among the youth and women. Reforms will focus on improving the business environment, to attract more investment, by enhancing competition and labor market flexibility, while further strengthening the social safety net. Efforts will also focus on streamlining regulation and digitalization of government services, including tax and customs administration.
“Substantial progress was made in discussing policies to address Jordan’s long-term vulnerabilities in the water and electricity sectors and to enhance its ability to address health emergencies, including future pandemics, and which could be supported by an arrangement under the Resilience and Sustainability Facility. Discussions are expected to be continued in the coming days aiming to be concluded in Washington DC.
“The staff team is grateful to the authorities for the candid and constructive discussions. The team met with Prime Minister Hassan, Minister of Finance Shibli, Minister of Planning and International Cooperation Toukan, Minister of Economic Affairs Shehadeh, Governor of the Central Bank of Jordan Al-Sharkas; and other Ministers and senior government and CBJ officials.”
