State Minister for Economic Affairs Mohannad Shahadeh affirmed that Jordan’s economy has once again demonstrated its resilience and strength by maintaining positive growth despite the difficult regional and geopolitical circumstances and the exceptional conditions facing the region.
In press statements on Tuesday evening, Shahadeh said that the national economy recorded a real growth rate of 2.9% during the first quarter of 2026, compared with 2.7% during the same period in 2025.
He noted that this performance is particularly significant because one-third of the period under review coincided with wartime conditions in the region, highlighting the economy’s ability to maintain steady growth and outperform several regional and global economies affected by conflicts.
Shahadeh explained that one of the most notable features of this growth is its broad-based nature rather than being concentrated in a single sector. Major productive sectors posted strong results, with agriculture growing by 6.8%, electricity by 4.3%, and industry by 5.3%.
He pointed out that the manufacturing sector made the largest contribution to overall growth, accounting for 16.6% of the total. He emphasized the sector’s strategic importance, noting that it represents 95% of Jordan’s national exports, serves as a major employer of Jordanian workers, and forms a cornerstone of the Economic Modernization Vision. Agriculture and several sub-sectors supporting small and medium-sized enterprises—including chemical industries, textiles, pharmaceuticals, and construction-related industries—also played key roles.
Shahadeh said the government recognized from the outset of the regional conflict the potential impact of geopolitical developments on the economy, particularly inflation, and therefore adopted proactive and realistic measures, especially regarding petroleum derivatives.
He stated that these policies helped contain inflation at 1.88%, a stable and reasonable level compared with neighboring countries where inflation rates range between 4% and 6%, and with some advanced economies where inflation exceeds 7%.
On monetary and financial stability, Shahadeh highlighted the strength of Jordan’s banking sector under the supervision of the Central Bank of Jordan, noting that foreign reserves exceed $27 billion, liquidity remains strong, and the capital adequacy ratio stands at 18%, surpassing international requirements and the standards set under Basel III.
Regarding the Amman Stock Exchange, one of the country’s key economic indicators, Shahadeh said that average daily trading volume increased to 13.6% this year compared with 8.8% last year. The market capitalization of listed companies rose by 5%, while the stock price index increased by 6.6%, recording overall growth of 9.9% and building on last year’s 45% surge. He said these figures reflect strong investor confidence in listed companies and the soundness of their financial performance.
In the construction sector, Shahadeh reported strong growth, with building permits increasing by 14.7% during the first four months of the year and licensed construction areas rising by 20%. He noted that the sector plays a vital role in the economy due to its links with more than 40 related industries and sectors.
On foreign trade, the minister stated that national exports increased by 7.3% during the first quarter of 2026 compared with the same period in 2025, supporting the balance of payments and contributing to a comfortable coverage ratio.
He also highlighted notable gains in key export markets, with exports to the Netherlands rising by 74%, exports to Belgium increasing by 51%, and trade with Syria growing by 39%.
Shahadeh stressed that Jordan’s accumulated experience in managing recurring crises enabled it to avoid widespread sector shutdowns that could have had prolonged economic consequences. Instead, the government adopted a flexible, phased planning approach to address daily geopolitical developments.
He reaffirmed the government’s commitment to implementing the directives contained in the Royal Letter of Designation and achieving the objectives of the Economic Modernization Vision. He added that future prospects are supported by progress on several major strategic projects, including achieving the financial close of the National Water Carrier Project this year.
The minister also referred to ongoing implementation steps for the railway project, dedicated budget allocations for the Risha Gas Project for 2026 and 2027, and continued acceleration of development projects within Amra City, including the sports stadium, conference center, and environmental park. These projects, he said, are intended to generate economic growth and improve citizens’ quality of life.
