AMMAN — Jordan has reached a staff-level agreement with the International Monetary Fund (IMF) on the sixth review of its economic reform programme and the third review under the Resilience and Sustainability Facility (RSF), paving the way for approximately $294 million in additional financing, subject to approval by the IMF's management and Executive Board.

 

The agreement followed an IMF mission to Amman, led by César Serra, which held discussions with Jordanian officials from October 21 to November 3, 2026.

 

Upon completion of the reviews, Jordan would receive SDR 97.784 million, equivalent to approximately $133 million, under the Extended Fund Facility (EFF), and SDR 118.764 million, or around $161 million, under the RSF, the IMF said in a statement on its website.

 

The EFF, approved by the IMF Executive Board on January 10, 2024, has a total programme size of SDR 926.370 million (approximately $1.2 billion), while the RSF arrangement, approved on June 25, 2025, amounts to SDR 514.650 million (approximately $700 million).

 

In a statement issued at the conclusion of the mission, Serra said that Jordan's economic reform programme had maintained strong performance despite regional tensions and heightened uncertainty resulting from the prolonged war in the Middle East.

 

Serra said that all quantitative performance criteria and most structural benchmarks under the sixth EFF review had been met, while all three reform measures scheduled for the third RSF review were on track for completion.

 

“We are pleased to announce that the IMF team and the Jordanian authorities have reached a staff-level agreement on the sixth review of the economic reform program supported by the EFF arrangement and the third review under the RSF arrangement. Programme performance has remained strong despite ongoing headwinds and elevated uncertainty stemming from the protracted war in the Middle East. All quantitative performance criteria and most structural benchmarks for the sixth review were met, and steady progress is being made toward achieving the program’s overall objectives.”

 

Economic resilience

 

Serra said that Jordan's economy had demonstrated resilience, supported by prudent macroeconomic policies, government measures to mitigate the impact of the regional conflict and continued support from international partners.

 

He noted that the regional war had affected the Kingdom through weaker tourism inflows, higher trade and transport costs, lower foreign direct investment and volatility in energy prices.

 

However, these pressures had been largely offset by stronger manufacturing activity, increased logistics services linked to the growing role of the Port of Aqaba as a regional trade and transport hub, a favourable agricultural season, and stronger-than-expected remittance inflows and regional tourism, he said.

 

Jordan's real gross domestic product grew by 3 per cent year-on-year during the first half of 2026, while inflation remained contained despite volatility in international commodity markets, according to the IMF statement.

 

The current account deficit also narrowed, supported by strong export performance, subdued non-energy imports and resilient remittances and regional tourism, which helped offset the higher energy import bill.

 

The Central Bank of Jordan continued to strengthen the Kingdom's external reserves, maintaining coverage above programme targets. The IMF said that prudent monetary and financial policies had helped sustain confidence in the Jordanian dinar and its peg to the US dollar, while dollarisation continued to decline.

 

“The banking sector remained sound, with strong capital buffers and ample liquidity,” the global lender said.

 

Nevertheless, the IMF cautioned that the economic outlook remained highly dependent on the duration and intensity of the regional conflict and the extent to which its effects continued to spill over into Jordan.

 

On the fiscal front, the IMF said the government had comfortably met its central government primary deficit target for the end of June 2026.

 

Prudent expenditure management helped offset a revenue shortfall equivalent to approximately 0.8 per cent of GDP during the first half of the year, as the impact of regional tensions weighed on tax collections.

 

The recovery in revenues during the third quarter, alongside continued efforts to contain losses at public utilities, is expected to support the achievement of the programme's fiscal targets by the end of the year.

 

The IMF said that the government also reaffirmed its commitment to putting public debt on a sustained downward trajectory through gradual fiscal consolidation, while safeguarding priority social and development spending.

 

According to the IMF, the draft 2027 budget targets a central government primary deficit, excluding grants, of 0.9 per cent of GDP.

 

The target will be supported by measures to strengthen revenue collection, improve tax compliance and enhance public spending efficiency.

 

 

Further measures to improve the financial sustainability of public utilities are also expected to contribute to the government's objective of reducing public debt to around 80 per cent of GDP by 2028.

 

The IMF said that Jordan had continued to advance its structural reform agenda, particularly in improving the business environment and developing major infrastructure projects.

 

Progress includes the adoption of unified sectoral licensing rules, aimed at simplifying regulatory procedures and improving the investment climate.

 

The Aqaba-Amman Water Desalination and Conveyance Project and the Aqaba-Shidiya-Maan Railway are also advancing. “Once completed, the projects are expected to strengthen economic resilience, improve connectivity and attract private investment.”

 

The IMF stressed that further reforms to enhance competition, increase labour market flexibility and encourage formal employment would be essential to achieving stronger economic growth and generating more jobs.

 

Climate and health resilience

 

Progress has also continued under the RSF arrangement, with all three reform measures scheduled for the third review on track for completion.

 

The measures include establishing a centralised register of infrastructure assets owned by state-owned enterprises in the construction and energy sectors, issuing instructions for an emergency-ready health benefits package, and formalising procedures for financing public health emergencies.

 

According to the IMF, the reforms are intended to strengthen Jordan's ability to withstand climate- and health-related shocks while supporting long-term economic and external stability.