- The IMF Executive Board completed the third review under the Extended Fund Facility (EFF) Arrangement with Jordan, providing the authorities with immediate access to the equivalent of SDR 97.784 million (about US$134 million), to support the authorities' economic program.
- Jordan's economic program supported by the EFF arrangement remains firmly on track, demonstrating the authorities' strong commitment to sound macro-economic policies and structural reforms to strengthen Jordan's resilience and accelerate growth to enhance job creation and provide opportunities for all Jordanians.
- Thanks to the continued pursuit of sound economic policies, and despite the considerable external headwinds, including the conflicts in the region, Jordan has maintained macro-stability and broad-based economic growth.
- The Executive Board also approved a new 30-month arrangement under the Resilience and Sustainability Facility (RSF) with Jordan, with access equivalent to SDR 514.65 million (about US$700 million), to support Jordan's efforts to address longer-term vulnerabilities in the water and electricity sectors and to enhance their ability to address public health emergencies, including future pandemics.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the third review of the arrangement under the Extended Fund Facility (EFF) . Jordan's four-year EFF arrangement, with access amounting to SDR 926.37 million (about US$1.3 billion, equivalent to 270 percent of Jordan's quota in the IMF), was approved by the IMF Executive Board on January 10, 2024 (see Press Release No. 24/004 ). This decision allows for an immediate purchase of an amount equivalent to SDR 97.784 million (around US$134 million), bringing the total purchases under the EFF arrangement to the equivalent of SDR 437.454 million (about $595 million). In addition, the IMF Executive Board approved an arrangement under the Resilience and Sustainability Facility (RSF) with Jordan, with access equivalent to SDR 514.65 million (about US$ 700 million, equivalent to 150 percent of Jordan's quota).
Jordan's continued economic resilience in a challenging external environment, with continuing conflicts in the region and high uncertainty, is a testament to the authorities' resolve to pursue sound macroeconomic policies. The authorities' ownership of the EFF arrangement remains strong, with program targets consistently met. Jordan registered stronger growth in 2024 and so far in 2025 than previously anticipated, demonstrating continued resilience. Growth reached 2.5 percent in 2024. Economic activity is expected to gradually strengthen in the coming years, supported by continued sound macroeconomic policies and accelerated reform implementation.
Inflation remains stable and low, reflecting the Central Bank of Jordan's (CBJ) firm commitment to monetary and financial stability and the exchange rate peg. Jordan's external position remains stable, with the current account deficit projected to remain close to 6 percent of GDP. The CBJ's gross international reserves increased to over US$20 billion by end-2024, with reserve adequacy exceeding 100 percent of the Fund's ARA metric. The financial sector remains healthy and well-capitalized. While the spillover effects from regional conflicts have also affected government finances, the authorities continue to make progress with a gradual fiscal consolidation to place public debt on a downward path, while creating room for social assistance and needed public investment. Jordan's structural reform agenda focuses on fostering inclusive private sector-led growth by enhancing the business environment and improving labor market policies, including to expand opportunities for youth and women.
The RSF arrangement will support the authorities' efforts to strengthen Jordan's longer-term balance of payments stability by promoting economic resilience and sustainability. The RSF arrangement aims to address longer-term vulnerabilities in the water and electricity sectors and enhance the authorities' ability to address public health emergencies, including future pandemics. Reform measures focus on: (i) enhancing the energy sector's financial sustainability and energy efficiency; (ii) improving the water sector's financial sustainability and water management; (iii) strengthening fiscal and financial sector resilience; and (iv) enhancing pandemic preparedness. The arrangement will augment policy space and financial buffers to mitigate risks arising from these challenges.
Following the Executive Board's discussion on Jordan, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:
"Jordan continues to maintain macroeconomic stability despite external headwinds from regional conflicts and heightened global economic uncertainty, owing to the authorities' steadfast pursuit of sound policies and continued strong international support. Growth in 2024 and so far in 2025 ended up stronger than anticipated, inflation is low, and reserve buffers are strong. Against elevated risks in the region, it is important that the authorities stay the course with sound fiscal and monetary policies to safeguard macroeconomic stability.
"The authorities continue to make progress with a gradual fiscal consolidation and strengthening fiscal sustainability, thanks to fiscal reforms that have improved revenue administration and expenditure efficiency. Looking ahead, efforts should continue to further enhance revenue mobilization and spending efficiency and to take contingency measures as needed to keep public debt on a steady downward path, while protecting priority social and capital spending. Efforts should also continue to improve the efficiency and viability of the public utilities to preserve the sustainability of public finances, while improving service delivery.
"Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that has served Jordan well and helped keeping inflation low. Jordan's banking sector remains healthy, and the central bank continues to strengthen its systemic risk analysis, financial sector oversight, and crisis management.
"Structural reforms should be accelerated to improve the business environment, promote competition, and attract private investment that is crucial to create a dynamic and resilient private sector, foster job-rich growth, and achieve the objectives of Jordan's Economic Modernization Vision. Strong and timely donor support remains essential to help Jordan navigate the challenging external environment, host the large number of refugees, and meet Jordan's development objectives.
"The reforms under the Resilience and Sustainability Facility aim to support the authorities' efforts to address long-term vulnerabilities in the water and energy sectors and to be better prepared for public health emergencies, including pandemics. These reforms will strengthen Jordan's balance of payments stability by promoting economic resilience and sustainability and by augmenting policy space and financial buffers to mitigate risks arising from these challenges."
Jordan: Selected Economic Indicators, 2023–26
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