Amman, June 30 (Petra) -- Minister of State for Economic Affairs, Muhannad Shehadeh, affirmed that the national economy has once again demonstrated high structural resilience and flexibility by maintaining a positive growth trajectory despite challenging regional geopolitical circumstances.

Shehadeh stated in a press briefing on Tuesday evening that Jordan’s real GDP grew by 2.9 percent during the first quarter of the current fiscal year, compared to 2.7 percent recorded during the corresponding period of 2025. He noted that this performance is highly significant given that a third of the measured period coincided with regional conflict dynamics, proving the economy's steady movement toward stable growth rates that outpace several regional and global economies affected by surrounding tensions.

The minister emphasized that the current expansion is characterized by broad-based sectoral diversity rather than concentration in a single area. Key productive sectors delivered strong performances, with agriculture expanding by 6.8 percent, the electricity sector by 4.3 percent, and industry by 5.3 percent. The manufacturing sub-sector secured the largest overall contribution to this growth at 16.6 percent. Shehadeh highlighted the strategic importance of manufacturing, which accounts for 95 percent of national exports, serves as a primary employer of the domestic workforce, and acts as a central pillar of the Economic Modernization Vision alongside agriculture and other job-creating sub-sectors such as chemicals, textiles, pharmaceuticals, and construction materials.

Addressing macroeconomic stability, Shehadeh explained that the government anticipated the impact of geopolitical factors on inflation early on and implemented proactive, calibrated policy measures, particularly concerning petroleum products. These policies successfully capped Jordan's inflation rate at a highly stable 1.88 percent, compared to neighboring countries where inflation ranges between 4 percent and 6 percent and certain advanced economies that have surpassed 7 percent.

On monetary and fiscal stability, the minister pointed to the robust buffering within the banking system under the management of the Central Bank of Jordan. Foreign exchange reserves have exceeded $27 billion, supported by excellent market liquidity and a capital adequacy ratio of 18 percent, which comfortably exceeds international Basel III requirements.

Regarding the Amman Stock Exchange (ASE), daily trading volume increased to 13.6 percent this year compared to 8.8 percent last year. Concurrently, market capitalization of listed firms rose by 5 percent, while the price index grew by 6.6 percent, recording a total growth rate of 9.9 percent to build upon the 45 percent surge achieved last year. This performance reflects high investor confidence in listed corporations and the transparency of their financial reporting.

The construction sector also showed strong momentum, with building permits rising by 14.7 percent during the first four months of the year and licensed spaces increasing by 20 percent. This growth has had a positive cascading effect across more than 40 connected sub-sectors.

In foreign trade, national exports rose by 7.3 percent during the first quarter of 2026 compared to the same period in 2025, strengthening the balance of payments. Jordan achieved notable market penetration in high-value destinations, with exports to the Netherlands surging by 74 percent and to Belgium by 51 percent, while bilateral trade with Syria increased by 39 percent.

Shehadeh stressed that through accumulated experience in crisis management, Jordan avoided arbitrary sector closures that could have caused long-term economic damage, opting instead for a flexible, phased planning mechanism to navigate daily geopolitical variables. He reiterated the government's commitment to enforcing royal directives and meeting the targets of the Economic Modernization Vision.

Looking ahead, Jordan is advancing several mega-strategic projects, including securing the financial closure for the National Conveyor water project this year, progressing with the national railway network, and allocating a clear budget for the Risha gas field development for 2026 and 2027. This comes alongside accelerating phases of the "Amra City" project, which will sequentially feature a sports stadium, a convention center, and an eco-park to serve as long-term economic multipliers.

//Petra// AF