An international economic report has projected an improvement in the pace of growth of the Jordanian economy in 2026, with the growth rate expected to rise to 2.9%, compared with 2.4% in 2025. This growth is driven by increased domestic consumption, an improvement in net exports, and a recovery in the tourism sector.
اضافة اعلان
According to a report issued by Fitch Solutions, Jordan is set to benefit from a recovery in demand in neighboring markets, particularly increased Syrian demand, in addition to improved tourism activity following the stabilization of the ceasefire in Gaza.
The report noted that Jordan’s monetary policy is likely to see further easing in 2026, with interest rates expected to be cut by around 50 basis points, supporting economic activity and easing borrowing costs to some extent, provided that the US Federal Reserve follows a similar path.
On the price front, the report expects inflationary pressures to remain under control, benefiting from global stability in food and energy prices. This would allow greater room to support growth without significant price pressures.
Regarding the external sector, the report forecast an improvement in Jordan’s current account deficit in 2026, supported by a decline in the energy import bill, stronger exports, and higher tourism revenues, despite ongoing challenges related to the regional environment and the global economy.
In a previous report, Fitch Solutions indicated that the Central Bank of Jordan is expected to continue its monetary easing cycle in 2026, in line with global monetary policy trends and in parallel with the US Federal Reserve, amid inflation remaining at low and well-contained levels in the Kingdom.
The report also noted that Jordan, along with a number of Gulf Cooperation Council countries, reduced interest rates in 2025 by a cumulative total of around 75 basis points. It expects Jordanian monetary policy to move toward an additional cut of about 50 basis points in 2026, should the US Federal Reserve continue its monetary easing path.
The report explained that interest rate cuts aim to support economic activity and enhance credit growth at a time when inflationary pressures are easing, while maintaining monetary stability.
— Al-Mamlaka
