Economy EU’s $3bn to back Jordan’s economy amid challenges By Pramod Kumar January 30, 2025, 11:46 AM Jordan News Agency Jordan's King Abdullah II and European Commission President Ursula von der Leyen at the Joint Declaration signing in Brussels The European Union (EU) will provide a €3 billion ($3.13 billion) financial package to Jordan to support its growth, as it manages the impact of regional geopolitical challenges. The 2025-2027 financial package will include €640 million in grants, €1.4 billion in investments, and €1 billion in macro-financial assistance. “Jordan is a key partner for Europe in the Middle East and the Mediterranean, serving as a pillar of regional stability,” European Commission president Ursula von der Leyen said after the signing of the EU-Jordan strategic and comprehensive partnership during King Abdullah II’s visit to Brussels. She said the EU-Jordan partnership will work jointly across various areas, such as regional cooperation, economic resilience, trade and investment, education and skills, migration and refugee support. The new partnership was agreed upon at the EU-Jordan association council on July 15, 2024. The EU will back Jordan’s structural reforms that drive growth and employment, as well as maximise the potential of the free trade area. The key areas of cooperation include green transition, sustainable resource management, and expanded cooperation on digitalisation, innovation, and entrepreneurship. Jordan and Qatar trade volume rises 6% in 2024 US senior official in Jordan to discuss bilateral issues UAE’s ADQ to invest $5bn in Jordan’s economy In December 2024, the International Monetary Fund (IMF) said Jordan will receive $131 million under its $1.2 billion extended fund facility programme. However, ongoing conflict in the wider Middle East is having a larger impact than initially anticipated, slowing economic growth and affecting government finances. The IMF said growth was projected to moderate to 2.3 percent in 2024, from 2.7 percent in 2023. In its December 2024 report, the IMF said “stronger net exports offsetting weaker domestic demand” would result in growth of 2.5 percent in 2025 and pick up in the coming years, assuming a successful resolution of regional conflicts.
