The European Bank for Reconstruction and Development (EBRD), in its semi-annual report, projected Jordan’s economy to grow by 2.7% in the first half of 2025 compared to the same period last year, driven by industry, financial services, and agriculture sectors.
اضافة اعلان
The report noted that overall growth slowed to 2.5% in 2024 from 2.9% in 2023, affected by regional instability impacting tourism, investment, and trade. Nevertheless, the performance in the first half of 2025 indicates a relative improvement in economic activity, although regional and global risks remain.
The EBRD forecasted 2.4% growth for Jordan in 2025 and 2.6% in 2026, relying on continued tourism recovery and the reopening of the Syrian market for Jordanian companies. However, these projections are subject to significant risks related to weak global demand and ongoing regional instability.
Trade with the United States
The report highlighted a 0.2% decline in U.S. imports from Jordan, particularly in the jewelry and fertilizer sectors. This decrease reflects the impact of new U.S. tariffs, which raised the average effective duty on imports from EBRD member countries from 1.4% in the first half of 2024 to 4% in the first half of 2025, affecting the competitiveness of exports.
Nevertheless, ready-made garments, which account for over two-thirds of Jordanian exports to the U.S., benefit from free trade agreement privileges, limiting the overall effect of reduced imports of jewelry and fertilizers.
Public Debt Pressures
The report classified Jordan among economies facing high public debt service costs relative to GDP, alongside Egypt, Ukraine, and some sub-Saharan African countries such as Ghana, Kenya, and Senegal. These indicators reflect growing fiscal pressures that may constrain government investment and fiscal flexibility.
Inflation in Jordan rose to 1.9% from January to July 2025, compared to 1.7% during the same period in 2024, with falling food prices mitigating some price pressures. The current account deficit narrowed slightly, supported by an 8.6% increase in exports in the first five months and a 9% rise in tourism revenues, despite regional tensions.
Regional Comparison
Regionally, the EBRD expects 3.1% growth across all its operational regions in 2025, rising to 3.3% in 2026, which exceeds Jordan’s projected performance, placing the country slightly below the regional average.
By comparison, Turkey is expected to grow at around 3.1%, and Morocco near 4%, while Jordan and Egypt share challenges related to high debt levels and servicing costs.
Jordan represents 0.8% of GDP within EBRD operational regions and about 5.6% of the South and East Mediterranean economies, reflecting its relatively small size within regional economic balances.
