Jordan's economy to expand by 2.7% in 2025: Central Bank governor
RIYADH: Jordan's economy is expected to grow 2.7 percent in 2025, further accelerating to 3.5 percent in the medium term, according to the governor of the country's central bank.
Adel Sharkas made the comments in the wake of credit rating agency S&P Global stating that Jordan's GDP expansion will be driven by the recovery of the tourism sector, as well as increasing trade relationships with Syria and Iraq.
The central bank governor added that inflation in Jordan reached 2.2 percent in the first two months of this year and is expected to stabilize at 2 percent for 2025, the country's news agency, Petra, reported.
The growth aligns with the broader trend in the Middle East, with Saudi Arabia forecasting a gross domestic product expansion of 4.6 percent in 2025, and the Central Bank of UAE projecting the Emirates' economy will increase by 4.5 percent this year and 5.5 percent in 2026.
Reflecting on the state of Jordan's financial health, Sharkas said: 'Our national economy has demonstrated exceptional resilience against challenges and high flexibility, enabling adaptation and limitation of consequences over the past five years, beginning with the coronavirus pandemic and subsequent consecutive external economic shocks.'
He added that Jordan attracted foreign direct investments valued at $1.3 billion during the first three quarters of 2024.
The CBJ governor further said that tourism income also jumped 22 percent in January compared to the same period last year.
Developing the tourism sector is crucial for Jordan, as the country considers this industry pivotal for economic growth and job creation.
Through the Jordan National Tourism Strategy 2021-2025, the country aims to attract international visitors with its archaeological and cultural heritage along with unique natural landscapes.
In a ceremony on March 16, Jordan's banking sector committed 90 million dinars ($126.92 million) to fund health and education projects over the next three years.
Jafar Hassan, the country's prime minister, said: 'This banking sector that you represent has been a fundamental pillar supporting our national economy's strength, stability and resilience throughout history.'
He added: 'During a quarter century, this great development of our Jordanian banking sector has materialized, achieving advanced global ratings, particularly in financial strength and banking system solidity.'
In March, the World Bank said that it is assessing the financing of five projects aimed at supporting economic reforms, social protection, and entrepreneurship in Jordan, with a total potential investment valued at $900 million.
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