Press Release No. 25/423

Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the fourth review of the arrangement under the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF) arrangement. Jordan’s four-year EFF arrangement, with access amounting to SDR 926.37 million (about US$1.3 billion, equivalent to 270 percent of Jordan’s quota in the IMF), was approved by the IMF Executive Board on January 10, 2024 (see Press Release No. 24/004). This decision allows for an immediate purchase of an amount equivalent to SDR 97.784 million (about US$130 million), bringing the total purchases under the EFF arrangement to the equivalent of SDR 535.238 million (about US$733 million). In addition, the Resilience and Sustainability Facility (RSF) for Jordan was approved on June 25, 2025 (see Press Release No. 25/221), with access to SDR 514.65 million (about US$700 million, equivalent to 150 percent of Jordan’s quota). The Board’s decision will also allow the disbursement of SDR 79.182 million (about US$110 million) under the RSF.

Jordan’s economy remains resilient, supported by sound macroeconomic policies and strong international backing. Growth accelerated to 2.7 percent in the first half of 2025 and is expected to reach 3 percent in the coming years, aided by major investment projects, deeper regional integration, and sustained implementation of structural reforms. Inflation stays anchored at about 2 percent, and the current account deficit is projected to narrow to below 5 percent of GDP over the medium term. The banking sector is stable, and international reserves are strong.

Fiscal performance remains in line with program targets, with robust revenue collection and current spending discipline. The authorities are committed to reducing public debt to 80 percent of GDP by 2028 through gradual fiscal consolidation and further actions to lower the losses of public utilities, while protecting social and development spending.

The authorities are determined to step up the pace of structural reforms to achieve stronger growth and generate more jobs. Reforms are advancing to boost investment, foster competition, improve labor market flexibility, and strengthen the social safety net, alongside digitalization of government services.

Progress under the RSF continues, with measures addressing vulnerabilities in water and electricity sectors and enhancing health emergency preparedness. The two RSF Reform Measures scheduled for this review have been completed.

Following the Executive Board discussion, Kenji Okamura, Deputy Managing Director and Chair, made the following statement:

“Jordan’s continued macroeconomic stability and resilience amid persistent external headwinds are a testament to the authorities’ steadfast pursuit of sound policies, aided by strong international support. Growth continues to recover, inflation remains low, and reserve buffers are strong. In the context of lingering regional tensions and global uncertainty, the authorities continued commitment to sound fiscal and monetary policies to safeguard macroeconomic stability is important.

“The authorities continue to make progress on gradual and growth-friendly fiscal consolidation. The recalibrated fiscal stance for 2026 is appropriate. Gradual fiscal consolidation, supported by the authorities’ Medium-Term Revenue Strategy and enhanced spending efficiency would help to place public debt on a downward path, while protecting social and capital spending. Efforts to maintain the long-term financial sustainability of the pension system and improve the efficiency and financial viability of public utilities are crucial.

“Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that continues to serve Jordan well. Jordan's banking sector remains healthy, and the central bank continues to strengthen its systemic risk analysis, financial sector oversight, and crisis management. Ongoing efforts to further strengthen the effectiveness of the AML/CFT framework are welcome.   

“Accelerated structural reforms are crucial to create a dynamic and resilient private sector and foster job-rich growth. The authorities are focused on measures to improve the business environment, promote competition, enhance labor market flexibility to address youth unemployment and low female labor force participation, and attract private investment. Strong and timely donor support remains essential to help Jordan navigate the challenging external environment and meet its development objectives, while shouldering the cost of hosting a large number of refugees.

“The solid progress of implementing the reform measures under the Resilience and Sustainability Facility will help to support the authorities’ efforts to address long-term economic vulnerabilities and strengthen Jordan’s balance of payments stability.”

 

 

Jordan: Selected Economic Indicators, 2024-2027
		2024	2025	2026	2027
			Proj.	Proj.	Proj.
Output and Prices		(Annual percentage change, unless otherwise noted)
Real GDP growth		2.5	2.7	2.9	3.0
GDP deflator		1.9	2.3	2.4	2.3
Nominal GDP (JD billions)		41.6	43.7	46.1	48.6
Consumer price inflation (annual average)		1.6	1.9	2.2	2.2
Unemployment rate (percent) 1/		21.4	…	…	…
Fiscal Operations		(in percent of GDP, unless otherwise noted)
Revenue and grants		22.7	22.8	23.6	23.9
Of which: grants		1.7	1.7	1.6	1.4
Expenditure 2/		28.5	28.1	28.3	28.2
Overall central government balance 3/		-5.9	-5.3	-4.8	-4.3
Primary government balance (excluding grants)		-2.6	-1.9	-1.3	-0.5
Combined public sector balance 4/		-4.0	-3.2	-2.6	-1.6
Government and guaranteed gross debt 5/		106.1	108.6	108.1	108.0
Government and guaranteed gross debt, net of SSC's holdings 5/		82.1	83.4	82.0	81.3
External Sector		(in percent of GDP, unless otherwise noted)
Current account balance (including grants)		-5.8	-5.1	-5.7	-5.5
Foreign Direct Investment		2.7	3.0	3.0	3.0
Gross usable international reserves ($ billions) 6/		20.3	20.7	21.4	21.8
In months of imports		7.7	7.3	7.2	7.0
In percent of the IMF’s Reserve Adequacy Metric		112	107	105	104
Sources: Jordanian authorities; and Fund staff estimates and projections.
1/ Unemployment rate for Jordanians only (excluding foreign residents).
2/ Includes other use of cash (i.e. off-budget expenditures).
3/ Includes statistical discrepancy.
4/ Defined as the sum of the primary central government balance (excl. grants and transfers to NEPCO and WAJ), NEPCO operating balance, and consolidated water sector balance.
5/ Government's direct and guaranteed debt (including NEPCO and WAJ debt). SSC stands for Social Security Corporation.
6/ Including gold and excluding commercial banks' FX deposits at the CBJ, bilateral accounts, and forward contracts. Including RSF.