National economy demonstrates resilience, positive outturns despite headwinds

AMMAN — Jordan's economy continues to exhibit notable resilience and a series of "favourable" macroeconomic outturns, navigating regional geopolitical headwinds effectively.

This performance is underpinned by sustained monetary and financial stability, a proactive public-private sector engagement model, and tangible progress in the execution of the Kingdom's Economic Modernisation Vision (EMV(.

The Kingdom's economic strength is reflected in Fitch Ratings' recent affirmation of Jordan's "BB-" long-term foreign currency sovereign credit rating with a stable outlook, underscoring international confidence in its fiscal and monetary management.

The GDP expansion registered 2.5 per cent in the preceding year and is forecast to accelerate to 2.7 per cent in the current year, pushed by strengthening domestic and external demand.

Monetary stability remains a cornerstone, evidenced by robust foreign exchange reserves held by the Central Bank of Jordan (CBJ), which exceeded $22.8 billion at end-April. This provides substantial import coverage for 8.8 months and anchors exchange rate stability.

Inflationary pressures remained contained, with the consumer price index averaging a low 2 per cent in Q1 2025, and a projected full-year rate of approximately 2.2 per cent.

The external sector displayed dynamism. National export revenues advanced 8.1 per cent year-over-year by end-February 2025, reaching JD1.309 billion, while aggregate exports, including re-exports, grew by 9.1 per cent to JD1.449 billion.

Tourism receipts were particularly buoyant, surging 8.9 per cent Year-Over-Year in Q1 2025 to JD1.217 billion. Expatriate remittances also contributed positively, increasing by 2 per cent in the first two months of 2025 to $606 million.

Domestic financial sector health was maintained, with customer deposits at commercial banks expanding 6.8 per cent annually to JD47.4 billion by end-March, and credit facilities extended to the private sector growing by 3.9 per cent to JD35.2 billion.

Real sector activity indicators, such as port throughput at Aqaba, also showed strong performance, with incoming container volume up 22.5 per cent Year-Over-Year in the first four months of 2025.

Strategic asset accumulation continued, with Jordan's gold reserves increasing to 72.27 tonnes by end of the first quarter in 2025.

The Q1 2025 progress report for the EMV highlights ongoing initiatives to stimulate key sectors and achieve sustainable growth objectives. Economic analysts observe that these positive outturns demonstrate the economy's capacity to absorb shocks.

Ahmad Majali, an economist, noted that while the full dividend of structural reforms accrues over the medium to long term, current growth is enabling Jordan to expand its fiscal space and manage budgetary pressures without resorting to severe contractionary measures.

He emphasised the critical need for "sustained reform momentum and institutional continuity."

Director General of the Jordanian Businessmen's Association Tareq Hijazi, underscored that "Jordan's financial and monetary stability, coupled with demonstrable progress in structural reforms," has underpinned the consistent economic growth.

He cited the record foreign reserves and positive assessments from international credit rating agencies like Fitch and Moody's (Ba3 stable) as key endorsements of the Kingdom's economic management.

Both analysts concurred on the imperative to translate these macroeconomic gains into "tangible" improvements in socio-economic welfare and to bolster Jordan's structural competitiveness.

Future policy, they suggested, should focus on deepening public-private partnerships for strategic investments and accelerating major development projects to achieve a higher growth trajectory, targeting above 3 per cent in the medium term, thereby creating a more dynamic and sustainable economic environment.