Immediate Financing of About $240 Million Made Available to Jordan under Both Programs
• IMF expects Jordan’s economy to grow by 2.7% in the first half of 2025, with inflation stable at 2%.
• IMF: Jordan’s IMF-supported economic program remains on track.
• IMF projects growth to rise to 3% in the coming years, supported by investment projects and reforms.
• IMF: Jordan is committed to reducing public debt to 80% of GDP by 2028.
• IMF stresses the importance of continued international support for Jordan amid regional challenges and refugee hosting.
On Friday, the Executive Board of the International Monetary Fund (IMF) approved the fourth review under Jordan’s Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).
Completion of the reviews allows for immediate access to approximately USD 130 million under the EFF and about USD 110 million under the RSF, providing support for Jordan’s economic program.
The IMF said economic growth accelerated to 2.7% in the first half of 2025, while inflation remained stable at around 2%, reflecting the efforts of the Central Bank of Jordan to maintain monetary stability and the peg of the Jordanian dinar to the U.S. dollar despite external challenges.
It noted that the IMF-supported economic program under the EFF remains on track, with authorities continuing to implement sound macroeconomic policies and structural reforms to strengthen resilience and support private-sector-led growth and job creation. The Fund also pointed to the implementation of the two reform measures required for the first RSF review, which enhances economic prospects and balance of payments stability.
The IMF stated: “Jordan’s economy remains resilient, supported by sound macroeconomic policies and strong international support. Economic growth accelerated to 2.7% in the first half of 2025 and is expected to reach 3% in the coming years, supported by major investment projects, deeper regional integration, and continued implementation of structural reforms.”
It added that inflation remains stable at around 2%, while the current account deficit is expected to decline to below 5% of GDP over the medium term. The banking sector remains stable, and international reserves continue to be strong.
“Fiscal performance continues to align with program targets, supported by strong revenue collection and discipline in current spending. The authorities reaffirm their commitment to reducing public debt to 80% of GDP by 2028 through gradual fiscal consolidation and additional measures to reduce losses at public utilities, while protecting social and development spending,” the IMF said.
The Fund emphasized that the Jordanian government has committed to accelerating the pace of structural reforms to achieve stronger growth and generate more employment opportunities. Progress continues on reforms aimed at boosting investment, promoting competition, improving labor market flexibility, strengthening the social safety net, and advancing the digitalization of government services.
It added that progress under the RSF continues through measures addressing vulnerabilities in the water and electricity sectors and strengthening preparedness for public health emergencies. The two reform measures scheduled for this RSF review have been completed.
IMF Deputy Managing Director and Chair of the Executive Board meeting, Kenji Okamura, said that Jordan’s continued macroeconomic stability and resilience amid persistent external headwinds reflect the authorities’ strong commitment to sound policies, supported by robust international backing.
He noted that growth continues to recover, inflation remains low, and reserve buffers are strong. He stressed that, amid ongoing regional tensions and global uncertainty, the authorities’ sustained commitment to sound fiscal and monetary policies to safeguard macroeconomic stability is of paramount importance.
Okamura added that the authorities continue to make progress on a gradual, growth-friendly fiscal consolidation path, noting that the recalibrated fiscal stance for 2026 is appropriate. He explained that gradual fiscal consolidation, supported by the authorities’ medium-term revenue strategy and improved spending efficiency, will place public debt on a downward trajectory while protecting social and capital spending. He emphasized that efforts to preserve the long-term financial sustainability of the pension system and to improve the financial efficiency and viability of public utilities are essential.
He affirmed that monetary policy remains appropriately focused on preserving monetary and financial stability and supporting the exchange rate peg, which continues to serve Jordan well. He noted that the Jordanian banking sector remains robust and that the Central Bank continues to strengthen its systemic risk analysis, financial sector supervision, and crisis management. He also welcomed ongoing efforts to enhance the effectiveness of the anti-money laundering and counter-terrorism financing framework.
Okamura stressed that accelerating structural reforms is critical to creating a dynamic and resilient private sector and fostering labor-intensive economic growth. He explained that the authorities are focusing on measures to improve the business environment, enhance competition, increase labor market flexibility to address youth unemployment and low female labor force participation, and attract private investment. He underscored that strong and timely donor support remains essential to help Jordan navigate a challenging external environment and achieve its development objectives while bearing the costs of hosting large numbers of refugees.
He concluded that solid progress in implementing reforms under the Resilience and Sustainability Facility will help support the authorities’ efforts to address long-term economic vulnerabilities and strengthen balance of payments stability in Jordan.
