IMF: Jordan's Economy Grows at a Faster Pace
In a recent study, the IMF says that Jordan’s economy remains «resilient, supported by sound macroeconomic policies and strong international backing.» According to the Washington-based global financial watchdog, growth accelerated to 2.7 percent in the first half of 2025 and is expected to reach 3 percent in the coming years.
Well integrated into the Middle East
Prosperity is expected to be supported by major investment projects, deeper regional integration, and the continued implementation of structural reforms. Following the latest joint meetings in early December to assess reform policies with the Jordanian government under Prime Minister Jaafar Hassan, the IMF’s Deputy Managing Director, Kenji Okamura, said: «Jordan’s continued macroeconomic stability and resilience despite persistent external headwinds are a testament to the authorities’ steadfast commitment to sound policies, supported by strong international assistance.»
Petrodollars help
Saudi Arabia was the largest Gulf contributor to foreign direct investment (FDI) inflows into Jordan in the first half of 2025, according to a report by The Jordan Times. The newspaper cited official data from Jordan’s balance of payments, showing that Saudi funds accounted for around 26 percent of total FDI inflows. Overall, 35.6 percent of total FDI were flowing from member states of the Gulf Cooperation Council (GCC).
Okamura added: «Against the backdrop of ongoing regional tensions and global uncertainty, the authorities’ continued commitment to sound fiscal and monetary policies to safeguard macroeconomic stability is of great importance.» Jordan has also pledged to reduce its public debt ratio from currently over nine-tenths to 80 percent of GDP. «Inflation remains anchored at around 2 percent, and the current account deficit is expected to decline to below 5 percent of GDP over the medium term. The banking sector is stable, and international reserves are robust,» Okamura noted.
To-do list remains
According to the IMF, there is still room for improvement in tackling youth unemployment in the country (total population: 11.8 million people)—which has intensified in recent years due to refugee inflows from Syria and Iraq—and in fostering free competition in the private sector. Skilled young Jordanians tend to prefer better-paid job opportunities in the prosperous oil-exporting GCC countries. The bloc acts like a magnet for qualified applicants from non-oil Arab states.
The IMF Executive Board has completed the fourth review of the arrangement under the Extended Fund Facility (EFF) and the first review of the arrangement under the Resilience and Sustainability Facility (RSF). Jordan’s four-year EFF arrangement, with access amounting to SDR 926.37 million (around 1.3 billion US dollars, equivalent to 270 percent of Jordan’s IMF quota), was approved by the IMF Executive Board on January 10, 2024. As a result of the IMF’s successful completion of the fourth review of the reform program, a total of 733 million US dollars has so far been disbursed to Jordan’s treasury.









