AMMAN — Jordan ranked first worldwide for price stability, according to an extensive analytical report issued by the Jordan Economic Forum (JEF) on performance under the 2025 World Competitiveness Index released by the International Institute for Management Development (IMD).

 

The report attributed the result to the effectiveness of monetary policy and the credibility of the exchange rate peg, which helped reduce economic uncertainty and narrow risk premiums, particularly when compared with several European economies that experienced inflationary pressures and fiscal imbalances over the same period.

 

Jordan also recorded a marked improvement in the price index, advancing to 11th place from 19th previously. The Kingdom posted strong results across several qualitative indicators, ranking third worldwide for the proportion of women in managerial positions, seventh for foreign labour and eighth for early-stage entrepreneurial activity.

 

Overall competitiveness improved to 47th place in 2025, up from 48th in 2024. The total score rose from 55.51 points to 57.79 points, an increase of 2.28 points in overall performance.

 

The JEF said the IMD World Competitiveness Index does not measure economic size or income levels, but focuses on the efficiency of the economic system and its capacity to organise institutions, policies, markets and infrastructure in a way that converts available resources into sustainable economic performance.

 

The index is based on more than 300 sub-indicators grouped under four main pillars: economic performance, government efficiency, business efficiency and infrastructure.

 

The forum said the improvement in recent years reflects gradual progress supported by macroeconomic stability and predictability in public policy, alongside institutional strengths, particularly in price stability, inflation control, regulatory clarity and selected aspects of public sector efficiency.

 

Over the past decade, 2025 marked the strongest overall performance, underscoring the ability of the national economy to maintain a relatively stable competitive position despite ongoing regional pressures.

 

Business efficiency emerged as the strongest pillar, with Jordan ranking 33rd in 2025, compared with 34th in 2024, the report said, attributing this to improved corporate management practices and a notable advance in the labour market sub-pillar, which improved from 29th to 21st.

 

The report clarified that the labour market pillar under the IMD methodology assesses business environment readiness from a company perspective, including the availability of skills, priority given to workforce training, wage levels and labour costs, rather than actual employment outcomes.

 

In government efficiency, Jordan ranked 39th out of 69 countries in 2025. Key strengths included first place globally for low dismissal costs, fifth place for bureaucratic efficiency and strong performance in income tax collection. Public finance indicators also improved, with the ranking rising to 40th from 42nd.

 

Progress was also recorded in public administration modernisation, with 48 of 51 priorities set for 2023 completed, representing an implementation rate of 94 per cent.

 

The infrastructure pillar showed overall improvement, with Jordan rising to 52nd place from 55th in 2024. The technological infrastructure ranking improved to 53rd from 58th. Jordan placed 10th globally for investment in the telecommunications sector, 12th for the number of graduates in scientific disciplines and 14th for positive population growth.

 

At the international level, the forum said the national ranking was close to that of Italy, with a narrow gap, and ahead of several EU countries, as well as Turkey and India.

 

Foreign direct investment inflows to Jordan in 2024 reached about 3.1 per cent of gross domestic product, a level the report said reflects relatively solid investor confidence compared with larger economies experiencing investment volatility.

 

The forum also said that the competitive gains are real and significant, but said the next phase requires a shift from progress driven by stability to growth driven by productivity. Priorities include strengthening private sector job creation, improving skills matching, accelerating innovation, diversifying exports and positioning investment promotion as a central economic policy tool.

 

Established in 2019, the JEF is an independent economic think tank that monitors financial, monetary and competitiveness indicators across the national economy and promotes dialogue between the public and private sectors in support of sustainable and inclusive growth.