Jordan’s economy shows resilience amid regional turmoil – EBRD

AMMAN — Jordan’s economy remained resilient in 2024 despite the impact of wars in Gaza and Lebanon, which dampened business and consumer confidence and constrained public spending, according to the European Bank for Reconstruction and Development (EBRD).

In its latest Regional Economic Prospects report released on Tuesday, the EBRD noted that a rebound in tourism during the second half of the year played a key role in supporting economic activity. The government's commitment to fiscal discipline and continued progress on structural reforms also helped sustain resilience and maintain market confidence.

In the meantime, unemployment remained high, standing at 21.4 per cent by the end of 2024 while inflation stayed low despite a slight uptick to 2.1 per cent in February 2025, the report read.

The Central Bank of Jordan maintained its policy rate since September 2024, mirroring the decisions of the Federal Reserve as part of its effort to preserve the currency peg. Foreign exchange reserves amounted to $21.1 billion, covering around eight months of imports.

Regional instability weighed on Jordan’s external position. The current account deficit widened to 5.9 per cent of GDP in 2024, while gross general government debt, including guaranteed debt, reached 115 percent of GDP by September.

EBRD projects that Jordan’s economy will benefit in 2025 from continued recovery in the tourism sector and the reopening of the Syrian market to Jordanian businesses. However, uncertainty over US foreign aid and trade policy poses risks to investment and economic growth.

The EBRD forecasts GDP growth of 2.2 per cent in 2025, rising to 2.4 per cent in 2026, contingent on improvements in regional stability.