Amman, Dec. 1 (Petra) – Jordan’s comprehensive revision of its national accounts is set to cast the economy in a stronger light, potentially improving the kingdom’s credit profile and boosting investor confidence, economists and financial sector officials told the Jordan News Agency (Petra).
The overhaul, which updated the GDP base year to 2023, added JD 3.6 billion – around 10% – to the previously reported economic output, bringing total GDP to JD 39.8 billion. Experts said the adjustment reflects a more accurate measure of the country’s economic size, incorporating previously unrecorded informal-sector activities and re-evaluated outputs across key sectors.
"This is not merely a technical exercise," said Firas Sultan, a financial-sector representative at the Jordan Chamber of Commerce. "It is a strategic recalibration of the economy’s footprint that strengthens Jordan’s credibility with global investors and rating agencies alike. By expanding coverage and improving data quality, we present a truer picture of the economy’s capacity and resilience." Analysts noted that the updated figures are likely to influence sovereign risk assessments. With GDP rising while debt levels remain unchanged, metrics such as the debt-to-GDP ratio and deficit ratios show improvement, enhancing the kingdom’s fiscal indicators in the eyes of institutions like Moody’s, S&P, and Fitch.
"The revision allows rating agencies to analyse Jordan’s economy on a more reliable basis, potentially supporting a positive shift in outlook or even a future rating upgrade," said Dr. Ghazi Al-Assaf, an economic expert. "The move also strengthens the kingdom’s negotiating position with international lenders, potentially lowering borrowing costs." The review spans multiple sectors, including energy, manufacturing, construction, and services, and accounts for informal economic activity and emerging industries. Dr. Fouad Krishan, an economics professor at the University of Jordan, highlighted that "the adjustment provides a more comprehensive view of economic activity, improving cross-country comparability and ensuring that policy planning is grounded in accurate, internationally-aligned data." Financial sector leaders emphasized the broader implications for economic planning and investment. Maher Al-Mahrouq, director-general of the Jordan Banks Association, said, "Accurate GDP figures underpin critical financial ratios, including debt sustainability metrics, deficit projections, and per-capita output. This enables better-informed investment decisions and more precise fiscal planning." Business leaders echoed the sentiment. Bashar Al-Zoubi of the Jordanian Businessmen Association noted that "transparent, updated economic data enhances confidence among investors and multilateral institutions, strengthening Jordan’s standing for financing and investment negotiations." Observers also highlighted the timing of the announcement, which coincides with robust macroeconomic trends, including rising exports, higher tourism revenues, increased foreign direct investment inflows, record foreign currency reserves, and stable inflation and employment indicators. "The GDP revision complements these developments," said economic commentator Muneer Daya, "by signaling an economy that is both resilient and poised for growth, capable of attracting lower-cost financing and sustaining investor confidence despite regional and global headwinds." As Jordan continues its post-pandemic economic recovery amid a challenging regional and global environment, the updated national accounts provide policymakers, investors, and international partners with a more nuanced and accurate assessment of the kingdom’s economic capacity, positioning it for stronger growth and financial stability in the years ahead.
//Petra// AA
