Amman, 18 October (Petra) – Jordan is executing a broad-based restructuring of its economy, marking a deliberate pivot toward fiscal consolidation, investment-led growth, and sectoral modernisation, officials and analysts say. The kingdom’s strategy aligns with King Abdullah II’s vision for economic modernisation, focusing on macroeconomic resilience, private sector empowerment, and integration into global trade and technology networks.
After years in which sluggish growth was attributed to external shocks, Jordan is now recording tangible domestic expansion, underpinned by a combination of structural reforms, strategic capital projects, and targeted fiscal measures. GDP growth reached 2.8% in Q2 2025, up from 2.4% in 2024, reflecting the impact of nearly 220 policy interventions aimed at stimulating investment, enhancing productivity, and stabilising key macroeconomic indicators.
Strategic Investment Pipeline The government plans to launch approximately $10 billion in flagship projects by 2026, focusing on water security, renewable energy, and transport infrastructure. These capital-intensive projects are designed to serve as both a growth catalyst and an anchor for broader structural reform, including industrial diversification and job creation. In his mandate to Prime Minister Dr. Jafar Hassan, King Abdullah II stressed that "strategic projects must lead the government agenda", underscoring their centrality to Jordan’s long-term economic trajectory.
Fiscal discipline remains a core pillar of the government’s strategy. His Majesty emphasised the need for countercyclical fiscal management to maintain debt sustainability, safeguard macroeconomic stability, and preserve policy space for accelerated growth and structural modernisation.
Policy Execution and Governance Observers note a marked shift toward execution-oriented governance, with the economic modernisation vision now serving as a guiding framework rather than a planning document. Former Economy Minister Dr. Youssef Mansour said, "A government anchored by a prime minister with deep macroeconomic insight is able to synchronise policy implementation effectively, balancing pragmatism with strategic vision." Policy consistency and credibility have been central to sustaining investor confidence. Nearly 220 policy measures implemented in 2025 have contributed to an uptick in growth, job creation, and sectoral performance. Construction, agriculture, tourism, and digital services have recorded above-trend activity, highlighting the economy’s gradual structural realignment.
Dr. Raad Al-Tal, economist at the University of Jordan, emphasised that Jordan has transitioned from a reactive, externally constrained growth model to a proactive, policy-driven expansion, even amid regional shocks, including the Gaza conflict and tensions in the Middle East. He projected that if current reform momentum persists, Jordan could exceed 3% GDP growth, its highest sustained expansion in over a decade.
Private Sector and Market Signals Private sector confidence has strengthened amid regulatory predictability and measured fiscal reforms. Tarik Hijazi, CEO of the Jordanian Businessmen Association, cited an 8.1% year-to-date rise in exports, driven by pharmaceuticals, fertilizers, and digital services. He urged accelerated project execution and deeper private sector integration to translate policy vision into tangible growth outcomes.
Economic analysts also highlight the stabilising impact of prudent fiscal policy, including adjustments in taxation and sector-specific incentives, which have mitigated external shocks while reinforcing Jordan’s investment climate. Hossam Ayish, economic analyst, noted that the government’s consultative and transparent approach has enhanced stakeholder confidence and created a participatory policy ecosystem, linking the modernisation agenda to daily policy execution.
Outlook Jordan is entering a more mature phase of economic governance, balancing fiscal prudence with investment stimulus, sectoral diversification, and structural reform. Continued momentum in policy implementation and capex rollout is expected to reinforce macroeconomic resilience, stimulate private sector-led growth, and position the kingdom as a stable, forward-looking investment hub in a volatile region. Analysts forecast that with sustained reform and disciplined execution, Jordan could achieve GDP growth exceeding 3%, marking a structural inflection point in its modernisation trajectory.
//Petra// AA
