Q1 growth reflects national economy's resilience, ability to adapt to challenges, say economists
30/06/2026 | 21:15:01
Amman, June 30 (Petra) -- Jordan's economy continues to advance steadily despite regional instability, supported by its resilience, adaptability, and ability to turn challenges into opportunities.
The economy's growth trajectory has been underpinned by the support of His Majesty King Abdullah II, whose policies have strengthened high-value-added sectors that drive economic growth, as well as by government measures and decisions that have accelerated the implementation of the Economic Modernization Vision and fostered a business environment conducive to attracting investment.
Jordan's economy exceeded the World Bank's latest forecast, which projected growth of 2.7% this year, rising to 2.9% in 2027. Instead, the economy expanded by 2.9% in the first quarter of this year.
Economists interviewed by the Jordan News Agency (Petra) said the first-quarter growth estimate reflects the strength of the national economy and its ability to maintain growth despite regional challenges and instability.
Former minister Yousef Mansour said recent economic indicators point to growth across several sectors, led by manufacturing. Industrial activity generally delivered positive results, while the agricultural sector also improved despite weather-related challenges affecting some activities.
He said the prevailing optimism stems from the government's focus on stimulating economic growth and launching projects that support economic activity and create jobs, rather than concentrating solely on economic challenges and public debt.
Mansour said he expects growth to continue improving next year, particularly if regional tensions ease. He added that continued government efforts to stimulate the economy, settle outstanding financial obligations, and launch productive projects would strengthen economic activity and increase productivity.
He also said the overall assessment of the government's performance remains positive, with growing optimism about its ability to deliver further achievements in the coming period.
Fathi Al-Jaghbir, president of the Jordan Chamber of Industry, said preliminary estimates issued by the Department of Statistics for the first quarter of 2026 confirm the pivotal role of the industrial sector in supporting economic growth.
He said the manufacturing sector expanded by 5.3%, contributing 0.86 percentage points to the overall economic growth rate of 2.9%, making it the largest contributor to growth during the quarter.
Al-Jaghbir said the results demonstrate the resilience of Jordan's economy and its ability to sustain growth despite regional challenges and unrest, underscoring the country's success in maintaining economic stability and strengthening investor confidence. He also attributed the performance to government policies and measures that have effectively supported the productive sector, transformed challenges into opportunities, and strengthened cooperation between the public and private sectors in implementing the Economic Modernization Vision.
He added that the figures also highlight the resilience of Jordan's industrial sector and its ability to continue expanding despite regional and global challenges while confirming the success of industrial companies in enhancing competitiveness and expanding production and exports, reinforcing industry's role as the engine of the national economy.
Maintaining this positive performance, he said, requires continued implementation of the Economic Modernization Vision, improving the sector's competitiveness, simplifying procedures, supporting exports and increasing local content to enable industry to continue leading economic growth in the coming years.
Al-Jaghbir said the industrial sector now represents the cornerstone of Jordan's economy, contributing about 24% of gross domestic product directly and around 45% directly and indirectly. It also accounts for nearly 95% of national exports, reinforcing its role in achieving sustainable growth, creating jobs and increasing value added in the economy.
Economic expert Adli Qandah said the increase in real gross domestic product growth is a positive indicator of improved economic performance. Achieving growth despite geopolitical challenges and regional instability reflects the economy's resilience and its ability to absorb external shocks.
He said the leading contribution of agriculture, industry, mining and electricity reflects diversified sources of economic strength. Agriculture benefited from relative improvements in production and demand, while industry and mining were supported by stronger external demand and higher global prices, particularly for phosphate, potash and certain manufacturing industries. The electricity sector also benefited from increased economic activity and stronger consumption by productive and service sectors.
Qandah said economic, fiscal and monetary policies indirectly supported the improvement by maintaining monetary stability and the exchange rate, keeping inflation at manageable levels, directing part of public spending toward capital and infrastructure projects, and gradually improving the business environment, thereby strengthening investor confidence.
He said the impact of the improvement varied across productive sectors, with export-oriented and industrial sectors benefiting more significantly, while gains remained limited in some lower-productivity service sectors.
Economic and investment expert Wajdi Makhamreh said the growth confirms that Jordan's economy has become more resilient to external challenges. At a time when the region is experiencing heightened uncertainty due to wars and geopolitical tensions, Jordan has maintained an upward growth trajectory, reflecting the strength of government economic policies, the resilience of state institutions, and their ability to manage risks.
He said the growth was driven by productive sectors rather than temporary or consumption-based activities. Higher growth rates in agriculture, manufacturing, mining and electricity indicate that the economy is generating genuine value added, strengthening production and exports and enhancing overall competitiveness.
Makhamreh said government economic policies have begun to yield results, with coordination between fiscal and monetary policies, alongside measures supporting the private sector, investment and production, helping sustain economic activity despite the difficult regional environment.
He said growth across a broad range of economic activities is an especially positive sign. When most sectors expand simultaneously, it reflects a broader economic base rather than reliance on a single sector, making growth more sustainable and less vulnerable to fluctuations.
Recording economic growth of 2.9% under complex regional conditions, he added, represents more than just an economic figure; it demonstrates that Jordan's economy possesses increasing resilience and a greater capacity to adapt to crises.
Makhamreh said that if economic reforms continue and the investment climate improves, Jordan will be able to build on this performance to achieve higher and more sustainable growth in the coming years, with direct benefits for citizens' living standards.
//Petra// AF