IMF expects foreign investment to rise alongside major projects in Jordan
IMF: Investment will drive the next phase of Jordan’s economic growthاضافة اعلان
IMF: International support remains essential to help Jordan host refugees
The International Monetary Fund (IMF) believes that Jordan’s economy is positioned to achieve stronger growth in 2027, reaching 3.1%, provided that major investment projects are launched. The economy is expected to maintain growth of 2.7% in 2026 despite ongoing regional tensions and the repercussions of the war in the Middle East.
These projections came as the IMF Executive Board approved the completion of the fifth review of Jordan’s program under the Extended Fund Facility (EFF), enabling the Kingdom to access approximately $134 million in additional financing. The Board also completed the second review under the Resilience and Sustainability Facility (RSF), making a further $54 million available.
The IMF noted that the war in the Middle East caused temporary disruptions in energy markets, weakened tourism activity, and increased shipping costs. Nevertheless, most sectors of the Jordanian economy continued to operate normally, while some sectors benefited from stronger external demand and improved export prices.
The Fund emphasized that Jordan has maintained macroeconomic stability through prudent economic policies, continued implementation of reforms, and sustained international support. Economic growth reached 2.8% in 2025, compared with 2.6% in 2024, while inflation remained low at 1.8% and foreign reserves stayed at strong levels.
The IMF highlighted the strong performance of the Fund-supported economic program, noting that all quantitative performance criteria were met and all structural reforms required under the fifth review were completed. It stressed that structural reforms remain crucial for achieving stronger and more resilient growth by improving the business environment, enhancing competition, increasing labor market flexibility, and reducing the costs of transitioning to the formal sector, thereby supporting private sector-led job creation.
The Fund also underscored the importance of continuing gradual fiscal consolidation to reduce public debt, improve public spending efficiency, lower losses in public utilities, preserve social and development spending, and ensure the long-term financial sustainability of the pension system.
IMF projections indicate a gradual improvement in economic indicators over the coming years. Nominal GDP is expected to rise to JOD 51.2 billion by 2028, while economic growth is forecast to accelerate to 3.1% in 2027, supported by the launch of major investment projects.
The Fund further expects the budget deficit and public debt to continue declining gradually in the coming years. Foreign direct investment is projected to increase from 3.1% of GDP in 2026 to 3.4% in 2028, supporting economic and investment activity.
On monetary policy, the IMF stated that the current policy stance remains appropriately focused on maintaining financial stability and supporting the fixed exchange rate regime. It praised the resilience of Jordan’s banking sector and ongoing efforts to strengthen systemic risk analysis, financial sector supervision, and crisis management.
The Fund also noted that the Resilience and Sustainability Facility program remains on track following the completion of the reform required for the second review. Continued implementation of reforms under the program is expected to address long-term vulnerabilities and strengthen external stability.
Finally, the IMF stressed the importance of sustained and timely international support for Jordan to help achieve its development objectives, bear the costs associated with hosting large numbers of refugees, strengthen its resilience to external shocks, and achieve stronger, more inclusive, private sector-led growth.
Al Mamlaka
