The Association of Banks in Jordan praised the performance of the national economy amid exceptional regional conditions and continued uncertainty, saying that real GDP growth of 3.0% in the second quarter of 2026, compared with 2.8% in the same quarter of 2025, demonstrates the Jordanian economy’s ability to withstand challenges, adapt and maintain economic activity and growth.
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The association said the results are particularly significant given the geopolitical and economic repercussions affecting the region and the resulting pressures on trade, investment, transportation and supply chains. It noted that continued growth across most economic activities is a positive indicator of the national economy’s strength, flexibility and ability to absorb external shocks.
Estimates by the Department of Statistics showed that growth extended across most economic activities. Agriculture led with growth of 7.8%, followed by manufacturing industries at 6.2%, electricity supply at 5.0%, and water supply at 4.1%. Financial and insurance activities grew by 3.4% during the second quarter and accounted for around 6.0% of real GDP.
The association highlighted the prominent role of productive sectors in driving growth during the second quarter. Manufacturing recorded the largest contribution to overall growth, adding 1.04 percentage points out of the total 3.0%, equivalent to around 35% of total growth. Agriculture contributed approximately 0.34 percentage points, wholesale and retail trade 0.25 percentage points, and financial and insurance activities 0.20 percentage points.
The association said this economic performance coincided with continued expansion in bank financing provided to various economic activities. Total credit facilities rose from approximately JOD 35.47 billion at the end of June 2025 to JOD 37.15 billion at the end of June 2026, an increase of nearly JOD 1.67 billion, or 4.7%.
The parallel growth was particularly evident in the industrial sector. Credit facilities extended to industry increased from around JOD 4.00 billion to JOD 4.19 billion, also growing by 4.7%, alongside 6.2% growth in manufacturing, which ranked first among economic activities in its contribution to overall growth. Manufacturing accounts for approximately 17.2% of real GDP, the highest share among the economic activities included in the estimates.
Credit growth also extended to other sectors. Financing for transport services increased by 7.1%, construction by 3.4%, and general trade by 1.4% year-on-year through the end of June 2026, reflecting the banking sector’s continued provision of financing across economic activities.
The Association of Banks said that the simultaneous growth in the economy and credit facilities highlights the banking sector’s vital role in financing economic activity and supporting productive and service sectors.
It also referred to an earlier study conducted by the association on the contribution and impact of the banking sector on the national economy. The study found that a 10% increase in credit facilities extended to various sectors is associated with an approximately 2.7% increase in real GDP.
The association said the findings underscore the importance of maintaining the flow of bank financing to economic sectors and directing more funding toward value-added activities, investment projects, and small and medium-sized enterprises to support sustainable growth, stimulate investment and create jobs.
