Jordan's economy shows 'resilience' amid regional uncertainty: JSF Report
15/10/2026 | 18:13:18
- Jordan’s economic growth gradually accelerates to 3 percent.
- Foreign trade indicators improve as exports rise and trade deficit narrows.
- Job creation for Jordanians hits an all-time high in 2025.
- Visitor numbers and tourism revenues grow despite regional uncertainty.
- Amman Stock Exchange posts strong results last year, extends gains into 2026.
Amman, Oct. 15 (Petra) - Jordan's economy continued to show growth across key sectors in 2026 despite regional uncertainty, supported by stronger exports, job creation, tourism, investment and business activity, according to a report released by the Jordan Strategy Forum (JSF) on Thursday.
The report, titled: "Jordan's economy: Encouraging performance amid continued uncertainty," is part of the forum's "Knowledge Is Power" series. It tracks key economic indicators for 2026, compares them with the same periods in 2025, and examines longer-term trends.
The forum noted that regional instability has compounded domestic economic challenges.
Citing the World Bank, the JSF said regional conflicts are testing the ability of Jordan's economy, businesses and households to maintain stability, sustain activity and adapt to changing conditions.
Jordan's economic growth accelerated gradually over the past two years, rising from 2.5 percent in the second quarter of 2024 to 2.8 percent in the same quarter of 2025 and 3 percent in the second quarter of 2026, the report revealed.
The forum said this trend suggests real GDP growth could approach 3 percent for the "full" year, as scope for further improvement if economic activity remains "strong" in the second half.
Inflation remained "moderate" at around 2.2 percent during the first eight months of 2026, helping limit pressure on purchasing power and business and production costs.
Manufacturing and agriculture were among the main contributors to growth. Manufacturing expanded by 6.2 percent, accounting for approximately 33 percent of overall growth, while agriculture grew by 7.8 percent and contributed around 11.3 percent.
The trade deficit narrowed by 6 percent during the first seven months of 2026 compared with the same period in 2025. The export-to-import coverage ratio improved from 51 percent to 55 percent, as total exports rose by 10.3 percent to approximately JD6.4 billion, while imports increased by just 2.4 percent.
Meanwhile, Jordan created a net 96,200 jobs in 2025, as Jordanians accounted for 91 percent of the total, marking a record for job creation among citizens, according to the report.
Unemployment among Jordanians fell to 21 percent in the second quarter of 2026, down from 21.3 percent in the same quarter of 2025. The number of active Social Security Corporation (SSC) contributors also rose by 4.3 percent to 1.69 million by the end of September 2026.
Additionally, tourism indicators improved despite regional uncertainty. Jordan received 4.97 million visitors during the first eight months of 2026, an increase of 2.9 percent year over year. Tourism revenue reached approximately JD3.94 billion in the first half of the year, compared with JD3.83 billion in the same period of 2025.
Remittances from Jordanians working abroad increased by 14.1 percent during the first seven months of 2026 to JD2.1 billion. The forum said these inflows provide an important source of household income and foreign currency, supporting domestic demand and the financing of imports.
Licensed construction areas increased by 4.7 percent to 5.84 million square meters between January and July 2026. Residential construction areas rose by 10.7 percent, potentially signaling improved construction activity and related demand. However, the forum cautioned that building permits do not necessarily translate into actual construction.
Financing for micro, small and medium-sized enterprises continued to expand, reaching approximately JD3.56 billion by the end of the first half of 2026.
The number of newly registered companies rose by 7.24 percent to 6,046 in the first nine months of 2026, up from 5,638 in the same period of 2025. Meanwhile, company registrations that were canceled or struck off fell by 15 percent, pointing to improved business activity.
Investment in development zones increased by 18.8 percent in the first half of 2026 to JD6.9 billion. Employment in these zones also grew, from 117,000 to approximately 123,000 workers.
Foreign direct investment stock in Jordan reached JD28.4 billion by the end of the second quarter of 2026, compared with JD26.4 billion in 2025, indicating that the Kingdom continues to maintain a substantial base of foreign investment despite regional uncertainty, according to the JSF.
Companies listed on the Amman Stock Exchange (ASE) reported combined profits of JD1.2 billion in the first half of 2026, up 14.3 percent from the same period in 2025. This was the second-highest first-half profit level on record.
The forum also outlined the exchange's performance in 2025, when its benchmark index rose by 45.1 percent, earning it an Arab Federation of Capital Markets (AFCM) award for the best-performing Arab stock exchange based on index growth.
Jordan's Investor Confidence Index, issued by the forum, increased by 21.9 percent in the second quarter of 2026 compared with the previous quarter. The improvement was driven by a 74.3 percent rise in the economic activity confidence index, its highest quarterly level in three years.
The forum also cited the International Monetary Fund's (IMF) June 2026 assessment, which showcased Jordan's continued macroeconomic stability despite regional conflict. The assessment displayed the country's foreign currency reserves, sound banking sector and strong implementation of economic reform programs.
The forum concluded that the improving economic performance provides a foundation for further progress, stressing the need to attract more domestic and foreign investment in partnership with the private sector, boost productivity, create quality jobs, strengthen economic and business resilience, and improve living standards.
It also labeled the Jordan-EU Investment Conference, scheduled for Nov. 19, 2026, at the Dead Sea, as a strategic opportunity to connect Jordanian projects with European financing, technology and expertise.
//Petra// HA