The Jordan Strategy Forum said Jordan has succeeded in maintaining stable economic growth and inflation rates despite geopolitical challenges and their economic repercussions across the region.
In a policy paper titled “Sustaining Macroeconomic Stability in Jordan: Beyond Growth and Inflation,” the forum said the Jordanian economy maintained positive real growth rates throughout its economic reform programs with the International Monetary Fund, except in 2020 due to the impact of the COVID-19 pandemic.
As the economy began its recovery, Jordan recorded real growth of 3.8% in 2021, before growth stabilized between 2.6% and 3.1% in subsequent years. The forum described this performance as stable given the geopolitical challenges facing the region.
Regarding price stability, the forum said Jordan succeeded in maintaining low and stable inflation despite the global inflationary wave that followed the COVID-19 pandemic. It attributed this performance to the Jordanian dinar’s fixed exchange rate against the U.S. dollar, prudent monetary policy, and comfortable levels of foreign reserves.
The forum also noted a gradual improvement in the government’s ability to mobilize domestic revenues to meet its financial obligations. Tax revenues increased from 13.9% of GDP in 2010 to 15.4% in 2024, while total domestic revenues rose from 19.9% to 21% of GDP over the same period.
The paper concluded that recently announced strategic projects will represent a significant test of the economy’s ability to balance macroeconomic stability with fiscal sustainability. If implemented efficiently and financed through partnerships with the private sector and international financial institutions, these projects are expected to contribute to boosting investment, raising productivity and stimulating long-term economic growth.
