Government spending controls and reprioritization are expected to ease fiscal pressures and gradually improve the budget deficit
S&P Global Ratings has affirmed Jordan’s long-term sovereign credit ratings in both local and foreign currencies at BB-, maintaining a stable outlook, despite challenging regional conditions that have negatively affected most countries in the region.
In a report issued Friday, the agency said the affirmation reflects the resilience of the Jordanian economy in the face of regional developments, progress in economic, fiscal and monetary reforms, higher foreign-exchange reserves, and continued strong support from international and bilateral partners.
S&P expects Jordan’s economy to grow by 2.5% in 2026, with average growth accelerating to around 3.2% between 2027 and 2029. The agency said growth will be supported by the rerouting of regional trade through Jordan, particularly via the Port of Aqaba, continued strength in remittances from Jordanians working abroad, and contributions from the industrial and mining sectors and major projects.
On public finances, S&P expects the consolidated general government deficit to reach 2.2% of GDP in 2026. It said government measures aimed at containing fiscal pressures through spending controls and reprioritization are expected to gradually improve fiscal deficits over the 2027–2029 period.
On monetary indicators, the agency noted that the Jordanian dinar’s peg to the U.S. dollar has helped support monetary and price stability.
S&P expects Jordan’s gross foreign-exchange reserves to reach around $26 billion by the end of 2026, noting that inflation remains moderate despite higher global oil and gas prices.
The agency also expects average inflation to stand at around 2.4% between 2026 and 2029, supported by government policies aimed at limiting the impact of higher oil prices on domestic prices.
S&P said the economic reform program supported by the International Monetary Fund remains an important pillar of Jordan’s economic and fiscal policies. Continued support from friendly countries and international financial institutions also remains a key factor supporting the Kingdom’s sovereign credit rating.
