Amman — Despite exceptional conditions affecting the region and the global economy, Jordan’s economy recorded its strongest growth in years during the second quarter of this year, expanding by 3%, above forecasts by international financial institutions.
Economists said the 3% growth recorded in the second quarter of 2026 indicates the Jordanian economy’s ability to sustain economic activity and absorb some external shocks. They also highlighted the positive significance of the composition of growth, which showed clear improvement in productive sectors, particularly agriculture and manufacturing.
Experts attributed the performance to government economic policies and measures adopted in recent months, the launch of several major projects, the expansion of public-private partnership (PPP) projects, and the growth of foreign reserves held by the Central Bank of Jordan.
Speaking to Al Ghad, the experts said the growth was particularly significant because it was driven by domestic economic factors, suggesting that the national economy has the potential to achieve higher growth rates in the coming period, particularly if regional conditions stabilize.
To strengthen and sustain growth in the coming quarters, experts called for building on sectors that have demonstrated clear growth potential and increasing domestic and foreign investment in them. They also recommended strengthening domestic production and replacing imports where economically viable, adopting policies that combine production and investment, and boosting domestic demand.
They also stressed the importance of linking incentives provided to economic sectors to clear indicators of employment and local value added, while publishing regular results to assess their effectiveness.
Economic Growth Reaches 3%
The Department of Statistics on Tuesday released its quarterly estimates for gross domestic product in the second quarter of 2026. The figures showed real GDP growth of 3.0%, compared with 2.8% in the second quarter of 2025, despite the impact of war and its repercussions across the region.
The growth rate is among the highest recorded in recent years and comes amid exceptional regional and global conditions. According to the Department of Statistics, the rate exceeded forecasts by international financial institutions for the Jordanian economy during the period, supported by government economic policies, incentives and measures that improved various economic indicators.
The European Bank for Reconstruction and Development had forecast in its latest economic outlook that Jordan’s growth would slow to 2.5% this year. The World Bank, meanwhile, had projected that domestic economic growth would not exceed 2.7% during the quarters of this year.
According to Department of Statistics data, agriculture, manufacturing and electricity were among the leading productive sectors driving growth. Agriculture recorded the highest growth rate at 7.8%, followed by manufacturing at 6.2% and electricity at 5.0%.
At the sectoral level, preliminary estimates showed that most economic activities recorded growth in the second quarter of 2026 compared with the same quarter of 2025.
Growth Driven by Domestic Economic Factors
Former Minister of State for Economic Affairs Yousef Mansour said the 3% growth recorded in the second quarter was not surprising given the government’s economic policies and measures adopted in previous months, which helped maintain economic activity despite the complex geopolitical and economic conditions affecting the region since the beginning of the year.
Mansour said the government’s launch of several major projects, the expansion of PPP initiatives, and growing optimism and confidence in the economy had played an important role in supporting economic activity.
He said the growth was particularly significant given the timing and circumstances in which it was achieved. The global economy had experienced widespread disruptions in land, sea and air transport in recent months, while the Strait of Hormuz and regional airspace had at times been closed. Tourism activity in the region had also declined from normal levels amid the prevailing conditions.
Against this backdrop, Mansour said the significance of the growth lies in the fact that it was driven by domestic economic factors, indicating that Jordan has the potential to achieve stronger growth in the coming period, particularly if regional conditions stabilize.
He stressed that sustaining the current growth momentum requires the government to continue implementing projects and stimulating economic activity.
Clear Improvement in Productive Sectors
Economic expert Hossam Ayesh said the Jordanian economy’s nearly 3% growth in the second quarter was a positive indicator, not only because it exceeded the rate recorded during the same period last year, but also because of the composition of the growth, which showed clear improvement in several productive sectors.
Ayesh said manufacturing growth of around 6%, agriculture at 7.8% and electricity at 5% reflected stronger performance in productive sectors. Manufacturing alone contributed more than one percentage point to overall growth, indicating that an important share of the expansion came from actual productive activity rather than services alone.
He added that agriculture’s contribution further strengthened the positive assessment of the composition of growth, particularly because the results were achieved during a quarter heavily affected by the economic, trade and energy repercussions of the Israeli-Iranian-US war, as well as disruptions to trade, transportation and energy, higher input costs and increased uncertainty.
Ayesh said growth of nearly 3% under such difficult regional conditions indicates the Jordanian economy’s ability to maintain activity and absorb some external shocks. At the same time, he stressed that the importance of growth should not be measured solely by its rate, but also by its sustainability and its impact on incomes, unemployment, economic opportunities and living standards.
He said Jordan’s geographic location, strategic reserves and stockpiles, and continued domestic economic activity may have helped limit the transmission of external shocks to the local economy, alongside continued activity in sectors such as manufacturing, agriculture and energy.
Ayesh said growth exceeding previous international forecasts demonstrated a degree of resilience and adaptability that may not have been fully reflected in those projections. He stressed that the key test in the coming period would be whether the economy can maintain this performance in subsequent quarters.
He added that the real value of the results would become evident through their impact on investment, exports, productivity and employment opportunities. Continued growth, he said, would also be important in reassessing some previous estimates of Jordan’s economic performance and its ability to withstand shocks.
To raise economic growth in the coming period, Ayesh called for building on sectors that have demonstrated strong growth potential and increasing domestic and foreign investment in them. He also recommended strengthening domestic production, replacing imports where economically viable, improving production and energy efficiency, and enhancing the business environment.
He stressed the importance of linking government policies to clear indicators covering investment, exports, value added and productivity, while maintaining fiscal and monetary stability and directing resources toward investments that increase the economy’s productive capacity.
Boosting Domestic Demand Key to Sustaining Growth
Ahmad Awad, director of the Phoenix Center for Economic and Social Studies, agreed that Jordan’s 3% growth in the second quarter of 2026 represented a positive development, particularly given the war, regional instability and its repercussions for trade, investment, tourism and production costs.
Awad said the increase from 2.8% growth during the same period last year indicated an improvement in economic activity, although the improvement remains gradual and requires further support to ensure its continuity and strengthen its economic and social impact.
Regarding growth exceeding international institutions’ forecasts, Awad said that when comparable periods and indicators are assessed, the results reflect stronger performance than previously estimated and underscore the importance of reviewing the assumptions underlying such forecasts.
He said it was also necessary to identify the factors that contributed to the performance, assess the impact of government policies and incentives, and determine whether economic sectors can continue expanding amid persistent uncertainty.
Awad also stressed the need to monitor the impact of growth on the economy’s ability to create new and decent jobs, including the number and stability of jobs, wage levels and social protection coverage.
He also highlighted the importance of measuring the extent to which growth improves living standards, increases purchasing power and broadens the benefits of economic activity across different governorates and social groups.
To strengthen growth in the next quarter, Awad called for government policies that combine support for production and investment, alongside developing workers’ skills, improving the business environment and boosting domestic demand through wages that better reflect the cost of living and broader social protection.
He also stressed the importance of linking incentives provided to economic sectors to clear employment and local value-added indicators, while publishing regular results to assess their effectiveness.
Source: Al Ghad
