AMMAN — The International Monetary Fund (IMF) expects Jordan’s economy to grow by about 3 per cent in the coming years, supported by sound macroeconomic policies, strong international backing, and continued structural reforms, the Fund said on Saturday.

 

The IMF Executive Board completed the fourth review under the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF), clearing the way for the immediate disbursement of SDR 97.784 million (about $130 million), according to the Jordan news agency, Petra.

 

This brings total IMF disbursements to Jordan under the current arrangement to approximately $733 million.

 

In its statement, the IMF said economic growth accelerated to 2.7 per cent in the first half of 2025 and is expected to strengthen further, driven by large investment projects, deeper regional integration, and ongoing reform efforts.

 

Inflation is projected to remain stable at around 2 per cent, while the current account deficit is expected to decline to below 5 per cent of gross domestic product over the medium term.

 

The Fund cited a stable banking sector and adequate foreign exchange reserves as key supporting factors.

 

The IMF said Jordan’s fiscal performance remains in line with program targets, reflecting improved revenue collection and restraint in current spending.

 

The government has reiterated its commitment to reducing public debt to 80 percent of GDP by 2028 through gradual expenditure rationalization and measures to reduce losses at public utilities, including the National Electric Power Company and the Water Authority, while maintaining social protection and development spending.

 

Public debt stood at 82.8 per cent of GDP at the end of August, down from 83.2 per cent a month earlier, following the rebasing of GDP using 2023 as the base year.

 

The Fund noted the government’s determination to accelerate structural reforms to support stronger growth and job creation, including measures to promote investment, enhance competition, improve labor market flexibility, strengthen the social safety net, and digitise government services.

 

Under the RSF, the IMF said progress continues in addressing vulnerabilities in the water and electricity sectors and in strengthening healthcare services, adding that all reform measures scheduled for this review have been completed.

 

Kenji Okamura, IMF Deputy Managing Director said that Jordan’s continued macroeconomic stability and resilience amid regional tensions and global uncertainty reflect the government’s commitment to sound fiscal and monetary policies, supported by strong international assistance.

 

The IMF also praised the Central Bank of Jordan, saying its monetary and exchange rate policies continue to support financial stability. The banking sector remains sound, the Fund said, noting ongoing efforts to strengthen supervision, systemic risk analysis, crisis management, and the framework to combat money laundering and terrorism financing.