Economists have affirmed that recent reviews by the International Monetary Fund highlight the strength and resilience of Jordan’s national economy, reinforcing investor confidence in the country’s business environment despite regional challenges.
اضافة اعلان
They noted that the successful completion of the fifth review reflects clear coordination between monetary and fiscal policies in strengthening economic resilience and enhancing credibility with international institutions.
The economists emphasized that the government’s swift response—through a comprehensive package of measures to protect the national economy—played a key role in limiting the negative impacts of regional tensions and supporting the continuity of economic sectors.
The IMF announced on Wednesday that it had reached a staff-level agreement with the Jordanian government on the fifth review of the economic reform program supported by the Extended Fund Facility, as well as the second review under the Resilience and Sustainability Facility.
Completion of the fifth review is expected to unlock approximately $140 million, while the second review could provide an additional $57 million.
The IMF also highlighted government measures to address regional tensions and mitigate their economic impact, including rising energy costs and disruptions to tourism, while maintaining prudent fiscal and monetary policies.
Confidence in economic stability
Firas Sultan, a representative of the financial and banking sector at the Jordan Chamber of Commerce, said the IMF’s approval reflects international confidence in the economy’s ability to withstand challenges and maintain stability.
He explained that the economy rests on solid foundations, supported by prudent fiscal and monetary policies that have preserved macroeconomic stability, particularly in inflation rates and foreign reserves.
He added that government measures—especially those ensuring energy security, supply chains, and liquidity—have been crucial in mitigating the crisis’s impact and sustaining economic activity.
Sultan also highlighted the strength of the banking sector, high liquidity levels, and capital adequacy as key factors supporting financial stability and investor confidence, noting that continued economic reforms will further enhance the business environment and attract investment.
Strong fundamentals and reform momentum
Dr. Iyad Abu Haltam, head of the East Amman Industrial Investors Association, said the IMF’s agreement signals the economy’s strength and ability to endure geopolitical challenges.
He pointed to key indicators supporting this assessment, including strong foreign currency reserves, economic growth, and the government’s commitment to reducing public debt to below 80% of GDP by 2028.
He also noted that maintaining low inflation reflects the success of the Central Bank’s monetary policy and strengthens the investment environment.
Abu Haltam added that IMF reports serve not only as evaluations but also as key references for lenders and international institutions, helping improve Jordan’s credit rating and secure financing under better terms and lower costs.
Investment climate and future outlook
Hassan Al-Taba’, a board member of the Jordanian Businessmen Association, said the fifth IMF review represents a new international vote of confidence in the country’s economic policies.
He highlighted continued GDP growth, low inflation, and strong foreign reserves as evidence of the economy’s resilience, helping mitigate external shocks and preserve achievements.
He also pointed to proactive government measures—from securing energy and supply chains to supporting affected sectors—as key contributors to maintaining a stable investment environment.
Role of monetary and fiscal policy
Economic expert Dr. Ahmad Al-Majali emphasized that the successful completion of IMF negotiations reflects the pivotal role of the Central Bank as the first line of defense for economic stability.
He noted that monetary policy has strengthened confidence by maintaining price stability, low inflation, strong foreign reserves, reduced dollarization, and improved credit growth.
He added that fiscal policy complemented these efforts through disciplined financial management and adherence to program targets, aligning with an institutional approach that enhances transparency and accountability.
Al-Majali stressed that the outcome of the review is not merely a negotiating success but a clear demonstration of the integration between monetary and fiscal policies in reinforcing economic resilience and credibility.
Petra News Agency
