National Economy Shows Positive Indicators - Jordan News

Jordan News

10-05-2025

National Economy Shows Positive Indicators Jordan continues to record solid positive economic indicators that reflect the resilience, strength, and adaptability of the national economy amid surrounding political circumstances, along with progress in implementing the Executive Program of the Economic Modernization Vision. اضافة اعلان Statistical data since the beginning of the year indicate that the national economy is heading in the right direction, supported by monetary and fiscal stability and a genuine partnership and coordination between the public and private sectors to stimulate economic sectors and achieve sustainable growth. Fitch Ratings affirmed Jordan's long-term foreign currency credit rating at 'BB-' with a stable outlook, reflecting the resilience and strength of the national economy, its ability to adapt to challenges, and international confidence in Jordan's financial and monetary stability. The national economy recorded a growth rate of 2.5% last year, with expectations for this to rise to 2.7% this year, driven by improved domestic and external demand. Central Bank data showed strong monetary stability, supported by record foreign reserves that exceeded USD 22.8 billion at the end of April, covering Jordan's imports of goods and services for 8.8 months. National exports grew by 8.1% by the end of February 2025, reaching JOD 1.309 billion, up from JOD 1.211 billion in the same period of 2024. Total exports rose by 9.1% to reach JOD 1.449 billion by the end of February 2025, compared to JOD 1.323 billion in the same period of 2024. Tourism revenues grew by 8.9% in the first quarter of 2025 compared to the same period in 2024, reaching JOD 1.217 billion. Inflation remained low and stable at 2.0% during Q1 2025, with expectations to remain around 2.2% throughout the year. Customer deposits in Jordanian banks increased by 6.8% year-on-year, reaching JOD 47.4 billion by the end of March 2025. Credit facilities provided by banks rose by 3.9% year-on-year to JOD 35.2 billion. Remittances from Jordanians abroad increased by 2% in the first two months of 2025, reaching USD 606 million. The Kingdom witnessed active maritime activity in the first third of 2025, with inbound containers at Aqaba Container Port increasing by 22.5%, and outbound containers by 12.8% compared to the same period last year. According to the World Gold Council, Jordan raised its gold reserves to 72.27 tons by the end of Q1 2025, up from 71.65 tons at the end of 2024. The Q1 2025 report on the Economic Modernization Vision 2023–2025 indicated tangible steps and ongoing efforts to stimulate sectors and achieve concrete progress, particularly in areas related to sustainable growth, which is a core focus of the national economic agenda. According to economist Dr. Ahmad Al-Majali, "Jordan's economic indicators currently show strong performance and resilience, which is commendable especially amid a turbulent regional environment and mounting financial pressures." He told Petra News Agency that 'the direct economic impact usually becomes visible in the medium to long term, especially regarding structural reforms and transformation plans.' He added that the government is leveraging the momentum in growth to expand its fiscal space, enabling it to absorb budget deficits without resorting to harsh austerity measures. He noted that sectors such as IT, tourism, trade, and certain transport services are already benefitting from growing demand, while other sectors like industry and agriculture require more time to reap the benefits of reforms due to the complexities and capital-intensive nature of modernization. Al-Majali stressed, 'The key issue is not just the raw indicators but the sustainability of improvement. The positive outlook promoted by the Economic Modernization Vision must be backed by strong executive will and institutional continuity to prevent backsliding on reform.' He also said public trust in the government's commitment appears to be growing, thanks to clear messages showing genuine intent to implement—not just announce—plans. He emphasized that international reports show Jordan has managed to maintain fiscal sustainability despite the widening budget deficit, thanks to growth-driven expanded fiscal space, which strengthens government financing capabilities and protects trust in the local economy. Al-Majali concluded that the challenge now is to turn quantitative improvements into qualitative ones that the public can feel, enhancing the competitiveness of the national economy and creating a more dynamic and sustainable business environment. For his part, Tareq Hijazi, Director General of the Jordanian Businessmen Association, affirmed that the national economy possesses high levels of efficiency and flexibility in dealing with geopolitical challenges both regionally and internationally. This is reflected in the confidence of international institutions through the upgrade and affirmation of Jordan's credit ratings. He explained that financial and monetary stability, along with progress in implementing economic, administrative, and fiscal reforms—and the stability of macroeconomic indicators—all contributed to maintaining economic growth. He pointed to record levels of foreign reserves as evidence of the strength of Jordan's monetary system and growing confidence in the national economy. Hijazi noted that the economy grew by 2.5% last year, exceeding initial estimates of 2.3%, driven by strong performance in key sectors such as agriculture and manufacturing. This has strengthened Jordan's position as a stable economic hub in a region marked by instability. He emphasized that this growth underscores the effectiveness of government policies, decisions, and its commitment to transitioning toward a more productive, open, and investment-attractive economy. He also highlighted that Fitch's 'BB-' rating with a stable outlook, and Moody's 'Ba3' rating for both foreign and local currencies, are evidence of the strength and resilience of Jordan's economy. Hijazi added that Jordan is among the most stable and investment-attractive Arab and regional economies, thanks to its stable business environment and a strong private sector that plays a key role in driving investments and development projects across various sectors. He stressed the importance of adopting strategic plans and effective economic decisions to support the national economy, with the goal of achieving growth rates above 3% in 2026 and 2027. He called for strengthening the public-private partnership in executing investment projects and leveraging private sector expertise in attracting investments. He also emphasized the importance of involving the private sector in impactful economic decision-making. Finally, Hijazi underscored the need to support development and service investments across all regions of the Kingdom and to accelerate the implementation of major investment projects, as these are vital priorities to stimulate economic growth and provide job opportunities for youth within the framework of the Economic Modernization Vision.
— (Petra)