Skip to content Skip to Search
Skip navigation

IMF gives Jordan access to $131m as reforms continue

Outdoors, Ground, Nature Unsplash.com/Moxin Wang
A view of Wadi Rum Village in Jordan. The country's fiscal policy aims to reduce public debt to 80 percent of GDP by 2028

The International Monetary Fund (IMF) will grant Jordan access to $131 million as the country’s economic reform programme remains strong despite it facing a challenging external environment.

The release of the funds remains subject to approval by the IMF’s management and executive board.

“Jordan continues to show resilience and maintain macro-economic stability, despite the headwinds caused by the intensifying conflict in the region,” the fund said after completing the second review of the $1.2 billion extended fund facility (EFF) programme approved in January.

The IMF said that the recent upgrades to Jordan’s credit ratings, the first in over 20 years, underscores the credibility of the authorities’ economic policies.

But as regional conflicts persist and widen, the impact on Jordan’s economy has been more severe than initially expected at the beginning of the reform programme.

Economic growth is expected to reach 2.3 percent in 2024, with domestic demand weakening but offset by a stronger performance in net exports.

Growth is projected to increase marginally to 2.5 percent in 2025. Inflation remains low at 2 percent, supported by the Central Bank of Jordan’s commitment to monetary stability and safeguarding the exchange rate peg.

The financial sector remains healthy and well capitalised, with the current account deficit projected to narrow to 4.4 percent of GDP. This will help to further build the central bank’s reserve buffers, which widen slightly to 4.7 percent of GDP next year.

Jordan’s fiscal policy aims to reduce public debt to 80 percent of GDP by 2028, which will be achieved through gradual fiscal consolidation, including limiting the central government primary deficit to 2 percent of GDP by 2025, the fund said.

Latest articles

Mubadala set to sell Brazilian port and mining assets

Abu Dhabi’s Mubadala Capital has commenced work on selling Porto Sudeste, a private port terminal in Brazil. The port is co-owned with Singapore-based commodities trader Trafigura. Describing Porto Sudeste as a “mature” asset, Leonardo Yamamoto, executive director of Mubadala Capital Brazil, told Reuters that the company’s role is “no longer very relevant”. Mubadala Capital and […]

Qlik provides data integration, tracking and management software to businesses

Adia to buy $1bn stake in US software company Qlik

Abu Dhabi’s sovereign wealth fund is buying a $1 billion stake in data analytics software company Qlik, the latest deal in a string of Gulf purchases from buyout groups. Thoma Bravo, a US buyout group that specialises in software businesses, acquired Qlik for $3 billion in 2016 and is to sell a stake to the […]

Adnoc Gas LNG Ahmed Alebri

Adnoc Gas considers M&A deals to meet LNG demand

Adnoc Gas is looking at international acquisitions and mergers to cope with what it predicts will be strong demand for liquefied natural gas (LNG) in the next decade, a senior executive said on Monday. “We have the balance sheet to do it, so if there is an opportunity, we will definitely consider it,” chief financial […]

AlAbraaj has several franchises in Saudi Arabia, including Mezza-W-Mashawi at Riyadh's King Khalid airport

Restaurant chain AlAbraaj plans IPO on Bahrain Bourse

AlAbraaj Restaurants Group is planning to list on Bahrain Bourse before the end of 2024. Founded in 1987, the restaurant chain manages 15 brands across 37 locations in Bahrain. It employs about 1,200 people. AlAbraaj also franchises five restaurants, three of which are in Saudi Arabia – Khobar, Jeddah and Riyadh. The company is finalising […]