Jordan secured a staff-level agreement with the International Monetary Fund on two economic programme reviews on Tuesday. The deal unlocks approximately $294 million in financing, though it is subject to formal approval by the fund’s management and executive board.
The agreement encompasses the sixth review of Jordan’s economic reform agenda under the Extended Fund Facility. It also includes the third review under the Resilience and Sustainability Facility.
The financing breakdown allocates $133 million through the first component and $161 million through the second. Cesar Serra, deputy chief of the Regional Analytics and Strategy Division in the Middle East and Central Asia Department at the IMF, issued a statement on the breakthrough.
"Jordan’s economy has continued to demonstrate resilience, supported by the authorities’ commitment to prudent macroeconomic policies, proactive measures to mitigate the spillovers from the regional conflict, and strong support from international partners," Serra said.
The country continues to navigate severe economic fallout from regional instability. Serra noted that the war has weighed on the national economy through reduced tourism inflows, elevated trade and transportation costs, weaker foreign direct investment, and fluctuating energy prices. Officials have largely offset these headwinds.
The IMF reported that performance under the reform agenda has stayed strong despite significant uncertainty. Amman met all quantitative performance criteria and most structural benchmarks for the sixth review. All three reform measures due under the third Resilience and Sustainability Facility review stayed on track for completion.
Real gross domestic product expanded by 3 percent year on year during the first half of the year. Inflation stayed contained despite global commodity price fluctuations, according to fund data.
The current account deficit narrowed due to robust exports, reduced non-energy imports, and steady remittances alongside regional tourism inflows. These factors countered the rising costs of energy imports.
The Central Bank of Jordan preserved foreign currency reserves above programme targets. The IMF said these measures maintained market confidence in the Jordanian dinar’s peg to the US dollar and lowered dollarisation rates. The banking sector maintained strong capital buffers and ample liquidity.
Official news agency Petra reported that the government plans to reduce public debt to roughly 80 percent of gross domestic product by 2028. Authorities intend to pursue gradual fiscal consolidation while preserving priority social and development spending.
The IMF projects Jordan’s economy to expand by 2.7 percent next year and accelerate to 3.1 percent in 2027. The fund warned that the near-term outlook depends on the duration and intensity of the ongoing war in the Middle East.
