Fitch Ratings has announced the affirmation of Jordan's Long-Term Idreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook, despite ongoing regional security tensions.
اضافة اعلان
Key Drivers for the Rating:
Economic Resilience: The agency highlighted Jordan’s economic and financial stability and its ability to withstand external shocks.
Reform Progress: Continued advancement in economic and financial reforms, a robust banking sector, and strong international support were cited as stabilizing factors.
International Support: Jordan continues to benefit from strong backing by donor countries and institutions, with an expected continuation of the national reform program in cooperation with the IMF.
Economic Projections:
Growth Rates: Fitch expects economic growth to reach approximately 2.6% in 2026, factoring in the impact of regional instability on the tourism sector and a decline in European visitors. This follows a 3% growth rate in the final quarter of 2025, driven by government and foreign investment.
Future Outlook (2027): Growth is expected to rise in 2027 due to increased capital spending, the implementation of major projects (such as the National Water Carrier project), and expanded trade with Syria and Iraq.
Debt & Inflation: The debt-to-GDP ratio is projected to begin a gradual decline starting in 2027. Inflation is expected to average 2.2% during 2026-2027.
Monetary Stability:
The report emphasized Jordan's success in maintaining macroeconomic and monetary stability through:
The continued peg of the Jordanian Dinar to the U.S. Dollar.
Maintaining a high level of foreign reserves.
Low dollarization rates and a resilient banking sector.
This affirmation by Fitch follows similar recent moves by S&P and Moody's, alongside the IMF's recent expert-level agreement on program reviews, reflecting high international confidence in the Jordanian economy's ability to navigate regional crises.
