Amman, June 17 (Petra) – The Executive Board of the International Monetary Fund (IMF) approved Wednesday the completion of the fifth review of Jordan's Extended Fund Facility (EFF) programme and the second review of its Resilience and Sustainability Facility (RSF) arrangement, enabling the Kingdom to access additional financing of $134 million under the EFF and $54 million under the RSF.
The IMF affirmed that Jordan has maintained macroeconomic stability despite ongoing regional security challenges. The Fund noted that the Jordanian economy entered the current period of regional tensions from a position of strength, supported by prudent fiscal, monetary and macroeconomic policies, as well as positive economic momentum.
According to the IMF, the government responded swiftly and effectively to mitigate the immediate impact of the regional crisis. Measures included strengthening energy security, facilitating trade and supply chains and providing targeted support to the sectors most affected, particularly tourism and industry. The government continued to assist vulnerable households through the National Aid Fund.
The Fund indicated that the performance of Jordan’s IMF-supported reform programme remains strong and on track. All quantitative performance criteria for end-2025 and most indicative targets for end-March 2026 were met, while all structural reform benchmarks associated with the fifth review were completed.
The IMF welcomed progress in improving the business environment, enhancing market competition, increasing labour market flexibility and reducing the costs of transitioning to the formal economy. It described the reforms as essential to supporting economic growth and job creation.
Jordan's economy grew by 2.8 per cent in 2025, up from 2.6 per cent in 2024, driven by strong performance across the industrial, agricultural, transport, mining and services sectors. Inflation remained low at 1.8 percent.
Despite continued uncertainty arising from regional developments, the IMF expects the impact on Jordan's economy to remain limited. Economic growth is projected at 2.7 per cent in 2026, rising to 3.1 per cent in 2027.
On public finances, the IMF noted that fiscal performance in 2025 exceeded programme targets, supported by stronger domestic revenues and controlled current expenditures while preserving social spending. The government achieved its primary budget deficit targets during the first quarter of 2026 despite economic pressures resulting from the regional conflict.
The Fund attributed the performance to prudent expenditure management, the preservation of capital spending priorities and efforts to keep public debt on a sustainable path despite pressures on both revenues and expenditures.
Regarding monetary policy, the IMF praised the Central Bank of Jordan's continued commitment to maintaining monetary stability. The Fund highlighted the country's strong foreign reserve position, which reached approximately $27 billion by the end of the first quarter of 2026.
The IMF noted that improving financial inflows helped reinforce the stability of the Jordanian dinar's peg to the U.S. dollar. Financial markets remained stable, while dollarisation levels continued to decline, reflecting strong confidence in Jordan’s macroeconomic framework and policy direction.
In response to evolving economic conditions, the Central Bank of Jordan introduced a JD760 million package of measures in April 2026 aimed at boosting banking sector liquidity and supporting affected sectors. The measures included reducing reserve requirements on demand deposits and expanding concessional financing programmes through licensed banks, helping maintain credit flows to productive sectors and strengthen economic resilience.
The government launched its National Programme for Financial and Economic Reform at the beginning of 2024. Since then, five consecutive reviews have been completed through the implementation of a series of structural, fiscal, and monetary reforms developed and executed by the government.
The reforms have contributed to preserving economic and financial stability amid a challenging regional environment without imposing additional financial burdens on Jordanians.
The successful completion of the reviews underscores the effectiveness of the government's economic policies and its ability to navigate regional and global economic challenges.
The government reaffirmed its commitment to continuing sound economic and financial reforms and strengthening resilience to external shocks. These efforts aim to safeguard macroeconomic stability and create conditions conducive to private sector-led growth and greater employment opportunities for Jordanians.
//Petra// HA
