Jordan Reports Growth of 2.5% in 2024, Says IMF
- Economy GDP IMF Middle East World
Global Business Magazine- 5 minutes read
The Executive Board of the International Monetary Fund (IMF) on Wednesday said that Jordan’s growth reached 2.5% in 2024 and economic activity is expected to gradually strengthen in the coming years, supported by continued sound macroeconomic policies and accelerated reform implementation.
The IMF, which completed the third review of the arrangement under the Extended Fund Facility (EFF), said that Jordan’s four-year EFF arrangement, with access amounting to about $1.3 billion, equivalent to 270% of Jordan’s quota in the IMF, was approved by the IMF Executive Board in January 2024. This allowed for an immediate purchase of an amount equivalent to $134 million, bringing the total purchases under the EFF arrangement to the equivalent of $595 million.
In addition, the IMF also approved an arrangement under the Resilience and Sustainability Facility (RSF) with Jordan, with access equivalent to about $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.
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% of GDP. The CBJ’s gross international reserves increased to over $20 billion by end-2024.
The financial sector remains healthy and well-capitalised. While the spill over 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.
The Resilience and Sustainability Facility (RSF) arrangement will support the authorities’ efforts to strengthen Jordan’s longer-term balance of payments stability by promoting economic resilience and sustainability.
Reform measures focused on enhancing the energy sector’s financial sustainability and energy efficiency; improving the water sector’s financial sustainability and management; strengthening fiscal and financial sector resilience; and enhancing pandemic preparedness.
Stronger Growth
Kenji Okamura, Deputy Managing Director and Acting Chair, said that Jordan continued 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, he said.
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, he said.
Looking ahead, efforts should continue to further enhance revenue mobilisation 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,” he said.
