- IMF staff and the Jordanian authorities have reached a staff-level agreement on the sixth review under the Extended Fund Facility (EFF) arrangement and the third review under the Resilience and Sustainability Facility (RSF). The completion of the EFF and RSF reviews subject to Board approval will make a total of SDR 216.548 million (about US$294 million) available.
- Despite prolonged headwinds and elevated uncertainty from the protracted war in the Middle East, the EFF- and RSF-supported programs remain firmly on track, reflecting the authorities' continued commitment to prudent macroeconomic policies and structural reforms.
- Economic activity remains robust, inflation is contained, and reserve buffers have strengthened despite significant regional headwinds. The authorities remain committed to gradual fiscal consolidation while protecting priority social and development spending, keeping public debt on a downward path, as well as advancing structural reforms to support private sector-led growth and strengthen resilience to climate and public health risks.
Amman: A staff team from the International Monetary Fund (IMF), led by César Serra, visited Amman during October 21 - November 3, 2026, for discussions on the sixth review of the economic reform program supported by the Extended Fund Facility (EFF), which was approved by the IMF's Executive Board on January 10, 2024 ( Press Release ). The mission also conducted the third assessment of Reform Measures (RMs) under the Resilience and Sustainability Facility (RSF) arrangement approved on June 25, 2025. At the conclusion of the mission, Mr. Serra issued the following statement:
"We are pleased to announce that the IMF team and the Jordanian authorities have reached a staff-level agreement on the sixth review of the economic reform program supported by the EFF arrangement and the third review under the RSF arrangement. Program performance has remained strong despite ongoing headwinds and elevated uncertainty stemming from the protracted war in the Middle East. All quantitative performance criteria and most structural benchmarks for the sixth review were met, and steady progress is being made toward achieving the program's overall objectives. All three Reform Measures due for the third RSF review are on track to be completed. The staff-level agreement is subject to approval by the IMF's management and Executive Board. Completion of the EFF review will make SDR 97.784 million (about US$133 million) available, out of the approved program size of SDR 926.370 million (about US$1.2 billion). Completion of the third RSF review will make SDR 118.764 million (about US$161 million) available, out of the approved SDR 514.650 million (about US$0.7 billion).
"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. While the war has weighed on Jordan's economy through lower tourism inflows, higher trade and transportation costs, weaker foreign direct investment, and elevated energy price volatility, these headwinds have thus far been largely offset. Strong manufacturing activity, a surge in logistics services associated with the growing role of the Port of Aqaba as a regional trade and transport hub, a favorable agricultural season, and stronger-than-expected remittance inflows and regional tourism have supported economic activity.
"Against this backdrop, real GDP growth reached 3 percent year-on-year in the first half of 2026, while inflation remained contained despite volatility in global commodity markets. The current account deficit narrowed on the back of strong export performance, subdued non-energy imports, and resilient remittance and regional tourism inflows, which offset a higher energy import bill. Meanwhile, the Central Bank of Jordan (CBJ) continued to strengthen external buffers and maintain comfortable reserve coverage above program targets, which, together with prudent monetary and financial policies, has helped preserve strong confidence in the Jordanian dinar and its peg to the U.S. dollar, as reflected in declining dollarization. The banking sector remains sound, with ample liquidity and strong capital buffers. While Jordan's economy is expected to remain resilient, the near-term outlook remains highly contingent on the duration and intensity of the war and the persistence of its spillovers across the region.
"The authorities comfortably met the central government primary deficit target for end-June 2026. Prudent expenditure management broadly offset a revenue shortfall of about 0.8 percent of GDP during the first half of the year as spillovers from the war weighed on tax revenue collections. The recovery in revenue collections during the third quarter of 2026, together with ongoing efforts to contain public utility losses, will support the achievement of the program's fiscal targets by year-end.
"The authorities reaffirmed their commitment to maintaining public debt on a sustained downward path through gradual fiscal consolidation while protecting priority social and development spending. In this regard, the draft 2027 budget aims for a central government primary deficit (excluding grants) of 0.9 percent of GDP, supported by efforts to strengthen revenue mobilization, enhance tax compliance, and improve spending efficiency. These measures, together with further actions to strengthen the financial sustainability of public utilities, aim to support continued progress toward the authorities' objective of reducing public debt to around 80 percent of GDP by 2028.
"The structural reform agenda has continued to advance but efforts could be strengthened. Important progress has been made in improving the business environment, including through the adoption of unified sectoral licensing rules, and in advancing major infrastructure projects. The Aqaba-Amman Water Desalination and Conveyance Project and the Aqaba-Shidiya-Maan Railway are progressing, and are expected to strengthen economic resilience, enhance connectivity, and catalyze private investment. Continued reforms to enhance competition, increase labor market flexibility, and promote formalization will be critical to support stronger job-rich growth.
"Reforms under the RSF continue progressing, with all three reform measures due for the third review on track to be completed as envisaged. These measures include establishing a centralized register of infrastructure assets held by state-owned enterprises in the construction and energy sectors, issuing instructions for an emergency-ready health benefits package, and codifying procedures for financing public health emergencies. Together, these reforms will help strengthen Jordan's resilience to climate- and health-related shocks while supporting long-term economic and external stability.
"The IMF staff team expresses its gratitude to the Jordanian authorities for candid and constructive discussions. The team met with Prime Minister Hassan, Deputy Prime Minister for Economic Affairs Shehadeh, Minister of Finance Shibli, Minister of Planning and International Cooperation Toukan, Minister of Energy and Mineral Resources Al-Kharabsheh, Governor of the CBJ Al-Sharkas, as well as other ministers, and senior government officials."
