S&P Affirms Jordan’s Credit Rating Despite Regional Pressures -
Government Fiscal Measures Curb Financial Pressures, Gradually Improve Deficit -
Amman, Aug. 28 (Petra)-- Standard & Poor’s (S&P) Global Ratings has affirmed Jordan’s long-term sovereign credit ratings in both local and foreign currencies at BB-, with a stable outlook, despite regional conditions that have adversely affected most countries in the region.
In its report issued on Friday, the agency said the affirmation reflected the resilience of the Jordanian economy in the face of regional developments, progress in economic, fiscal and monetary reforms, higher foreign exchange reserves, and continued strong support from international and bilateral partners.
S&P projected Jordan’s economy to grow by 2.5% in 2026, with average growth accelerating to around 3.2% during 2027-2029. The agency said growth would be supported by the redirection of regional trade flows through Jordan, particularly via the Port of Aqaba, continued strong remittances from Jordanians working abroad, and contributions from the industrial and mining sectors as well as major projects.
On public finances, S&P said the consolidated general government deficit is expected to reach 2.2% of GDP in 2026. It noted that government measures aimed at easing fiscal pressures through expenditure controls and reprioritization are expected to contribute to a gradual improvement in fiscal deficits during 2027-2029.
On monetary indicators, the agency said the peg of the Jordanian dinar to the US dollar has helped support monetary and price stability.
S&P expects Jordan’s gross foreign exchange reserves to reach around $26 billion by the end of 2026, noting that inflation remains moderate despite the global rise in oil and gas prices.
The agency forecast average inflation of around 2.4% during 2026-2029, supported by government policies aimed at limiting the impact of higher oil prices on domestic prices.
S&P also emphasized that the economic reform program supported by the International Monetary Fund (IMF) remains an important pillar of Jordan’s economic and fiscal policies, alongside continued support from friendly countries and international financial institutions.
The agency considered these factors key elements supporting Jordan’s sovereign credit rating.
//Petra// MF
