The World Bank stated that Jordan has maintained macroeconomic stability despite a challenging and volatile regional environment, relying on prudent fiscal and monetary policies while continuing to implement key structural reforms.
اضافة اعلان
According to a World Bank document on progress in the Jordan Growth and Competitiveness Enhancement Program, monitored and translated by Al Mamlaka, Jordan’s economic performance remains resilient, with inflation under control, public debt on a corrective path, and the financial sector maintaining stability.
The document noted that the government continues to implement its long-term reform program within the framework of the Economic Modernization Vision and the Public Sector Modernization Roadmap, with particular focus on private sector development, digital transformation, energy efficiency, and enhancing economic participation of women and youth.
Jordan, in line with priorities outlined in the Economic Modernization Vision and successive government reform plans, is working to improve the business environment, encourage private investment, and expand employment opportunities by streamlining regulatory procedures, broadening access to financing for companies, reducing input costs, and enhancing digital and financial inclusion.
The document highlighted a new proposal to provide additional financing for the program through a planned operation designed to support government-led priorities, build on progress achieved in previous reforms, and remain consistent with the broader macroeconomic framework, including the IMF-supported program.
The proposed operation aligns with the World Bank Group’s Country Partnership Framework for Jordan for FY2024–2029, particularly its objectives of promoting private sector-led job creation, human capital development, enhanced inclusion, and strengthening resilience and sustainability.
The operation complements ongoing investments and results-based financing initiatives supporting digital transformation, expanded access to finance, renewable energy, women’s economic participation, and public sector efficiency.
The document emphasized that addressing cross-sector constraints limiting competitiveness and financial intermediation contributes directly to the overarching goals of the Country Partnership Framework, particularly the twin objectives of poverty reduction and shared prosperity.
The proposed developmental objective is to improve the business-enabling environment and deepen access to finance to support private sector-led growth.
The World Bank expects the operation to enhance the environment for private investment, including streamlining business procedures, supporting labor market flexibility and formal sector integration, expanding digital and financial inclusion, deepening capital markets, and supporting climate-responsive financing.
Expected outcomes include increased adoption of digital government payments and electronic transactions, higher participation of micro, small, and medium enterprises in formal financial services, enhanced competition and regulatory predictability, increased private investment in renewable energy, progress in women’s labor market participation and integration into the formal sector, improved access to alternative financing channels, increased mobilization of sustainable finance, and expanded disclosure and classification of climate-aligned financial activities.
According to the World Bank, the program aims to accelerate Jordan’s transition toward a more competitive, digitally advanced, and financially inclusive economy by improving the business environment, streamlining procedures, enhancing digital services, increasing labor market flexibility, deepening the financial sector, and broadening access to finance—supporting job creation, investment, and the efficiency and resilience of economic and financial systems.
Al Mamlaka
