IMF Executive Board Completes the Fourth Review under the Extended Fund Facility and First Review under the Resilience and Sustainability Facility Arrangements for Jordan
IMF News, December 12, 2025
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- IMF Executive Board Completes the Fourth Review under the Extended Fund Facility and First Review under the Resilience and Sustainability Facility Arrangements for Jordan
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Bibliographic details
- Published: December 12, 2025
Review outcome and financing
- The Executive Board completed the fourth review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).
- Immediate access provided:
- about US$130 million under the EFF (equivalent to SDR 97.784 million).
- about US$110 million under the RSF (equivalent to SDR 79.182 million).
- EFF arrangement totals and access:
- EFF access amounting to SDR 926.37 million (about US$1.3 billion, equivalent to 270 percent of Jordan’s quota).
- Total purchases under the EFF arrangement to date: SDR 535.238 million (about US$733 million).
- RSF arrangement:
- Approved with access to SDR 514.65 million (about US$700 million, equivalent to 150 percent of Jordan’s quota).
Macroeconomic assessment and projections
- Recent performance:
- Economic growth accelerated to 2.7 percent in the first half of 2025.
- Inflation remains anchored around 2 percent.
- The Central Bank of Jordan maintained the peg to the U.S. dollar amid external headwinds.
- Projections and medium-term outlook:
- Growth is expected to reach 3 percent in the coming years.
- Inflation stays anchored at about 2 percent.
- The current account deficit is projected to narrow to below 5 percent of GDP over the medium term.
- Banking sector is stable and international reserves are strong.
- Drivers of expected improvement:
- Major investment projects.
- Deeper regional integration.
- Sustained implementation of structural reforms.
Fiscal stance and public debt objectives
- Fiscal performance:
- Fiscal performance remains in line with program targets, with robust revenue collection and current spending discipline.
- Public debt target:
- Authorities committed to reducing public debt to 80 percent of GDP by 2028 through gradual fiscal consolidation and actions to lower public utilities’ losses, while protecting social and development spending.
- Fiscal policy guidance from IMF statement:
- The recalibrated fiscal stance for 2026 is appropriate.
- Gradual fiscal consolidation, supported by the Medium-Term Revenue Strategy and enhanced spending efficiency, would help place public debt on a downward path while protecting social and capital spending.
- Efforts needed to maintain long-term financial sustainability of the pension system and improve efficiency and financial viability of public utilities.
Structural reforms and RSF progress
- Authorities’ reform priorities:
- Step up pace of structural reforms to achieve stronger growth and generate more jobs.
- Boost investment, foster competition, improve labor market flexibility, and strengthen the social safety net.
- Digitalization of government services.
- RSF-specific advances:
- Progress 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.
- IMF emphasis:
- Accelerated structural reforms are crucial to create a dynamic private sector, address youth unemployment and low female labor force participation, and attract private investment.
- Strong and timely donor support remains essential to help Jordan navigate external challenges and meet development objectives, including costs of hosting a large number of refugees.
- Ongoing efforts to strengthen AML/CFT framework, systemic risk analysis, financial sector oversight, and crisis management are welcome.
Selected economic indicators, 2024–2027 (as reported)
- Output and Prices (Annual percentage change, unless otherwise noted)
- Real GDP growth: 2024 — 2.5; 2025 — 2.7; 2026 — 2.9; 2027 — 3.0
- GDP deflator: 2024 — 1.9; 2025 — 2.3; 2026 — 2.4
- Nominal GDP (JD billions): 2024 — 41.6; 2025 — 43.7; 2026 — 46.1; 2027 — 48.6
- Consumer price inflation (annual average): 2024 — 1.6; 2025 — 2.2
- Unemployment rate (percent) 1/: 2024 — 21.4; 2025 — …
- Fiscal Operations (in percent of GDP, unless otherwise noted)
- Revenue and grants: 2024 — 22.7; 2025 — 22.8; 2026 — 23.6; 2027 — 23.9
- Of which: grants: 2024 — 1.7; 2025 — 1.4
- Expenditure 2/: 2024 — 28.5; 2025 — 28.1; 2026 — 28.3; 2027 — 28.2
- Overall central government balance 3/: 2024 — -5.9; 2025 — -5.3; 2026 — -4.8; 2027 — -4.3
- Primary government balance (excluding grants): 2024 — -2.6; 2025 — -1.9; 2026 — -1.3; 2027 — -0.5
- Combined public sector balance 4/: 2024 — -4.0; 2025 — -3.2; 2026 — -1.6
- Government and guaranteed gross debt 5/: 2024 — 106.1; 2025 — 108.6; 2026 — 108.1; 2027 — 108.0
- Government and guaranteed gross debt, net of SSC's holdings 5/: 2024 — 82.1; 2025 — 83.4; 2026 — 82.0; 2027 — 81.3
- External Sector
- Current account balance (including grants): 2024 — -5.8; 2025 — -5.1; 2026 — -5.7; 2027 — -5.5
- Foreign Direct Investment: (no numeric values reported in source)
- Gross usable international reserves ($ billions) 6/: 2024 — 20.3; 2025 — 20.7; 2026 — 21.8
- In months of imports: 2024 — 7.7; 2025 — 7.3; 2026 — 7.2; 2027 — 7.0
- In percent of the IMF’s Reserve Adequacy Metric: 2024 — 112; 2025 — 107; 2026 — 105; 2027 — 104
Key policy recommendations and priorities
- Maintain sound fiscal and monetary policies to safeguard macroeconomic stability and the exchange rate peg.
- Continue gradual, growth‑friendly fiscal consolidation while protecting social and capital spending.
- Implement the Medium-Term Revenue Strategy and enhance spending efficiency.
- Strengthen long-term pension sustainability and improve efficiency and financial viability of public utilities.
- Accelerate structural reforms to:
- Improve the business environment and promote competition.
- Enhance labor market flexibility to address youth unemployment and low female labor force participation.
- Attract private investment and support private sector-led, job-rich growth.
- Sustain and coordinate strong donor support to help meet development needs and refugee-related costs.
- Continue strengthening AML/CFT framework, systemic risk analysis, financial sector oversight, and crisis management.
IMF Executive Board press release (December 12, 2025).