Amman, Jan. 5 (Petra) – The government presented a comprehensive briefing to the Senate and the Lower House of Parliament on key developments in the national economy during 2025, highlighting the economy’s resilience and the achievement of positive outcomes across multiple sectors despite regional political and security challenges.
The government said the Gross Domestic Product, measured at constant prices, continued to post positive quarterly growth. After recording 2.5 percent growth during the first three quarters of 2024, growth rose to 2.6 percent in the fourth quarter of that year, then to 2.7 percent in the first quarter of 2025, and to 2.8 percent in the second and third quarters. As a result, the economy grew by 2.8 percent during the first three quarters of 2025, compared to 2.5 percent in the same period of 2024.
It explained that this performance was driven mainly by productive sectors, particularly manufacturing at 5.1 percent, agriculture at 7.7 percent, electricity and gas supply at 4.9 percent, and the transport and storage sector at 4 percent. The government added that growth in these sectors is expected to positively affect employment indicators in the medium term, given their capacity to generate job opportunities and provide stable working environments.
National exports were a major driver of growth, increasing by 7.6 percent during the first ten months of 2025 due to improved global market conditions and higher demand for local products.
The government detailed that stronger economic growth was clearly reflected in stock market performance. The market closed 2025 with a 44.5 percent increase in market capitalization, while trading volume rose by 83 percent to JD 2.2 billion, the highest level since 2018. The price index climbed by 45 percent, with gains led by the financial, mining, manufacturing, energy, and utilities sectors. Share prices increased for 106 companies, 90 of which recorded gains exceeding 10 percent, reflecting broad-based growth rather than concentration in specific sectors. The number of active investors also rose from 1,006 to 1,455 during the year.
Profitability indicators showed a 10.7 percent increase in the profits of publicly traded companies during the first three quarters of 2025, with 107 out of 162 companies reporting profits. The number of companies registered with the Companies Control Department increased by 18.7 percent, marking the highest growth rate in several years.
On the monetary side, foreign reserves at the Central Bank reached a record $25.5 billion by the end of 2025, up $4.5 billion from the previous year, covering about nine months of imports. Bank deposits grew by 7.3 percent, while the dollarization rate declined from 18.4 percent at the end of 2024 to 17.8 percent by the end of October 2025.
Regarding the balance of payments, remittances from expatriate workers rose by 4.2 percent during the first ten months of 2025 to JD 2.6 billion. Tourism revenue increased by 7 percent during the first eleven months, while investment during the first three quarters reached JD 1.1 billion, up 27.7 percent compared to the same period in 2024.
Jordan completed the fourth review of the Extended Fund Facility for 2025, enabling the country to draw $130 million, with the International Monetary Fund providing a positive assessment of fiscal performance and progress toward reducing public debt to 80 percent of GDP. The first review of the Resilience and Sustainability Facility was also completed, allowing Jordan to draw $114 million from the approved $744 million facility.
Public finance performance in 2025 focused on accelerating capital spending, with about JD 1.4 billion disbursed, representing a record growth rate of 15.1 percent and a capital expenditure execution rate of 96 percent. The year also saw the repayment of JD 320 million in outstanding spending, following repayments of JD 300 million in 2024, with an additional JD 300 million expected in 2026 as part of a plan to settle all budget arrears incurred before 2024.
Actual domestic revenues increased by 4.5 percent in 2025, achieving a collection rate of 98 percent of the budgeted target, compared to 93 percent in 2024.
In the social sector, the government adopted a series of measures to help alleviate living costs. These included increasing allocations for the social safety net and the National Aid Fund in the 2025 budget to cover 15,000 additional families, exempting first-time apartment purchases from registration fees and property taxes for the past three years, waiving accumulated property tax fines under specific conditions, and granting exemptions from fines related to expired vehicle licenses and acquisition fees.
Additional measures included tax reductions on cars, exemptions for students on scholarships at public universities from outstanding fines, financing solar water heater installations for 2,584 homes, and signing an agreement with the King Hussein Cancer Foundation to provide cancer insurance coverage for 4.1 million citizens.
The government said these achievements represent a milestone within an ongoing development process and align with the objectives of the Economic Modernization Vision. It added that the first executive program concluded at the end of last year, while the second program for 2026–2029 will be launched soon. The government underlined that continued cooperation between the executive and legislative branches remains essential to sustaining growth and development.
//Petra// AJ
