Latest news with #CentralBankofJordan
Ammon
18 hours ago
- Business
- Ammon
Reframing economic reform: A Central Bank perspective on Jordan's transformation
Raad Mahmoud Al-Tal In a rapidly evolving global economic landscape, the recent remarks by the Governor of the Central Bank of Jordan, Adel Sharkas, offer a clear signal that Jordan has embarked on a fundamentally new path of economic reform. The country has shifted away from reactive, short-term policy adjustments toward a proactive and strategic reform agenda, guided by the Economic Modernisation Vision. This transition has not only redefined national economic objectives but has also introduced a new set of tools and implementation mechanisms. This transformation can be understood through three interrelated pillars. First, Jordan has adopted a forward-looking approach that prioritises economic resilience in the face of external shocks. Second, macroeconomic stability has been reestablished as the cornerstone of long-term, sustainable growth. Third, the coordination between fiscal and monetary policy has evolved into a coherent, integrated framework designed to support reform over the medium and long term. Jordan's recent growth performance, averaging 2.9 per cent during 2021–2024, is not simply a rebound, it signals a structural shift. The growth trajectory has become broader-based and more externally driven, with investment contributing around 40 per cent and the external sector 38 per cent to overall growth during this period. This indicates that the economy is gradually becoming less reliant on domestic consumption and public expenditure and more rooted in productive, scalable sectors. This shift reflects the cumulative impact of structural reforms that have enhanced productivity and invested in human capital—key components of what economists refer to as potential output. In effect, Jordan is building the capacity to sustain growth without triggering inflationary pressures. On the external front, the economy has shown notable resilience. Non-traditional exports have increased their share of GDP from 16.2 per cent in 2016 to 20.9 per cent in 2024. The energy bill has been significantly reduced—now at 7 per cent of GDP—due to long-term gas agreements and a diversified energy mix. Additionally, workers' remittances, a vital source of foreign exchange, have remained strong, totaling $3.6 billion in 2024. Monetary policy has played a crucial role in this stabilization. Inflation has been contained at approximately 2 per cent in the first half of 2025, despite global price pressures. Foreign currency reserves, now exceeding $22 billion, provide more than eight months of import coverage. The decline in dollarization to 18.1 per cent further underscores growing confidence in the Jordanian dinar. The banking sector, too, has emerged as a pillar of stability and growth. Bank deposits have reached 47.7 billion dinars, while credit facilities have expanded by over 7 billion dinars since 2020. Jordan has also made significant strides in digital financial services, with digital payment volumes now equivalent to 146 per cent of GDP a reflection of improved access, efficiency, and innovation in the financial ecosystem. Importantly, the Central Bank of Jordan is no longer functioning solely as a regulator, it has become a strategic partner in the country's reform agenda. Its leadership in promoting financial inclusion, digital transformation, and monetary stability reflects a proactive institutional role aligned with national development priorities. Governor Sharkas's address is not just a summary of economic metrics; it is a clear statement that Jordan is gradually breaking free from its historic vulnerabilities. The country is laying the groundwork for a more resilient, self-sustaining economic model capable of withstanding future uncertainties. However, the road ahead is not without challenges. Sustaining this progress requires institutional continuity, deeper public-private collaboration, and a cultural shift toward long-term economic thinking. Ultimately, it is not just reform policies, but a broader economic mindset that will define Jordan's ability to navigate the next decade.
Jordan News
21 hours ago
- Business
- Jordan News
Central Bank of Jordan Holds Key Interest Rate Steady - Jordan News
The Central Bank of Jordan's Open Market Operations Committee has decided, during its fifth meeting of the year, to maintain the key interest rate and all other monetary policy instrument rates at their current levels without change. اضافة اعلان This decision followed a comprehensive assessment of recent economic, monetary, and financial developments both locally and internationally. Economic indicators point to the resilience and robustness of the national economy amid ongoing regional geopolitical tensions. Jordan's GDP grew by 2.7% in the first quarter of 2025, a 0.5 percentage point increase compared to the same period last year, driven by growth across nearly all economic sectors. The central bank projects overall GDP growth of 2.7% for the full year 2025, supported by improvements in both domestic and external demand. Monetary stability in the Kingdom remains strong, bolstered by foreign currency reserves exceeding $22 billion as of the end of June 2025—enough to cover 8.4 months of the country's imports of goods and services. Inflation remained stable at 2% during the first half of the year, with expectations for it to remain around 2.2% for the full year, helping preserve purchasing power and support the competitiveness of the Jordanian economy. Likewise, the banking sector continues to show solid performance, with total customer deposits increasing by 7.1% year-on-year to reach JD 48.2 billion by the end of June 2025. Credit facilities granted by banks also rose by 3.9% year-on-year, reaching approximately JD 35.5 billion. Financial soundness indicators show the Jordanian banking sector is robust, with a capital adequacy ratio of 18.0%—one of the highest in the region—and a legal liquidity ratio of 144.7%, well above the Central Bank's required 100%. Jordan's external sector continues to perform positively. Tourism revenue increased by 11.9% in the first half of 2025, reaching $3.7 billion, compared to the same period last year. Total exports grew by 8.6% during the first five months of 2025, amounting to $5.6 billion. The Central Bank of Jordan reaffirmed its ongoing commitment to closely monitoring economic, monetary, and financial developments at both the domestic and international levels and taking all necessary measures to maintain monetary and financial stability in the Kingdom. These efforts aim to ensure moderate and stable inflation rates and support sustainable economic growth.
Zawya
21 hours ago
- Business
- Zawya
Low-cost flights to resume in Jordan by late 2025
AMMAN — Low-cost airlines are expected to resume flights to Jordan in the final quarter of 2025, Minister of Tourism and Antiquities Lina Annab has announced. Speaking to Al Mamlaka TV, Annab said the ministry is in ongoing contact with several low-cost carriers to accelerate the return of their operations to the Kingdom. The minister attributed the suspension of services to recent geopolitical tensions in the Middle East, which prompted airlines to temporarily redirect their routes to other destinations in the region, including away from Jordan. She noted that the tourism sector has begun to stabilise following a two-week period of unrest in June, triggered by the Israeli-Iranian air war. According to the minister, Jordan has witnessed improvements in visitor numbers, tourism growth, and revenues in recent months. Official figures show outbound tourism spending rose by 3.3 per cent in the first half of 2025, reaching US$999.7 million. However, spending in June dropped sharply by 22.7 per cent to US$195.6 million. Inbound tourism revenue climbed 11.9% during the same period, totalling US$3.667 billion, despite a 3.7% dip in June to US$619.2 million, largely due to the impact of regional tensions. Data from the Central Bank of Jordan indicated significant increases in tourism income from various regions: 42.9 per cent from Asian nationalities, 35.6 per cent from European travellers, 25.8 per cent from American visitors, and 11.5 per cent from Arab tourists. Revenue from other nationalities rose by 43.0 per cent.
Jordan Times
2 days ago
- Business
- Jordan Times
Low-cost flights to resume in Jordan by late 2025
AMMAN — Low-cost airlines are expected to resume flights to Jordan in the final quarter of 2025, Minister of Tourism and Antiquities Lina Annab has announced. Speaking to Al Mamlaka TV, Annab said the ministry is in ongoing contact with several low-cost carriers to accelerate the return of their operations to the Kingdom. The minister attributed the suspension of services to recent geopolitical tensions in the Middle East, which prompted airlines to temporarily redirect their routes to other destinations in the region, including away from Jordan. She noted that the tourism sector has begun to stabilise following a two-week period of unrest in June, triggered by the Israeli-Iranian air war. According to the minister, Jordan has witnessed improvements in visitor numbers, tourism growth, and revenues in recent months. Official figures show outbound tourism spending rose by 3.3 per cent in the first half of 2025, reaching US$999.7 million. However, spending in June dropped sharply by 22.7 per cent to US$195.6 million. Inbound tourism revenue climbed 11.9% during the same period, totalling US$3.667 billion, despite a 3.7% dip in June to US$619.2 million, largely due to the impact of regional tensions. Data from the Central Bank of Jordan indicated significant increases in tourism income from various regions: 42.9 per cent from Asian nationalities, 35.6 per cent from European travellers, 25.8 per cent from American visitors, and 11.5 per cent from Arab tourists. Revenue from other nationalities rose by 43.0 per cent.
Jordan News
4 days ago
- Business
- Jordan News
Jordan's Central Bank Governor Projects Over 4% Medium-Term Economic Growth - Jordan News
Governor of the Central Bank of Jordan, Dr. Adel Al-Sharkas, affirmed that the national economy continues to grow steadily despite regional geopolitical challenges, thanks to a comprehensive economic modernization vision that redefined Jordan's approach to reform. اضافة اعلان Speaking during a policy dialogue organized by the Jordan Strategy Forum titled "Reform, Stability, Resilience: The Economic Trinity in a Changing World", Al-Sharkas emphasized the transition from reactive, short-term policy approaches to a proactive and integrated strategy aimed at enhancing economic resilience and sustainability. Key Highlights: Growth Outlook: The Central Bank estimates real GDP growth at 2.7% for 2025, with projections exceeding 4% by 2028, driven by large-scale infrastructure projects tied to the Economic Modernization Vision. Macroeconomic Resilience: Jordan's economy is backed by a robust monetary and fiscal framework, institutional strength, and a sound banking sector. These fundamentals have garnered growing international investor confidence, reflected in the declining yields of Jordan's Eurobonds in secondary markets. Growth Performance (2021–2024): The average growth rate stood at 2.9%, the highest since 2010, attributed to improvements in productivity, technological adoption, and human capital development. Investment contributed 40% to this growth, while the external sector accounted for 38%. Export & Energy Performance: National exports reached new markets, with non-traditional exports contributing 20.9% of GDP in 2024, up from 16.2% in 2016. Meanwhile, energy import costs dropped to 7% of GDP, down from a third in 2012, due to diversified energy sources and long-term gas agreements. Tourism and FDI: Despite a slight dip in June due to regional tensions, tourism revenues rose 11.9% in H1 2025, reaching $3.7 billion, with expectations to hit $7.7 billion by year's end. FDI inflows amounted to $1.6 billion (3.1% of GDP) in 2024, and remittances from Jordanians abroad rose to $3.6 billion, projected to reach $3.7 billion in 2025. Monetary Stability: Inflation was kept around 2% in H1 2025. The Jordanian dinar remains strong, supported by $22 billion in foreign reserves, covering 8.4 months of imports. The banking sector continues to expand credit facilities, with loans rising to JOD 35.3 billion in May 2025 and total deposits hitting JOD 47.7 billion. Financial Inclusion & Digital Payments: The Central Bank increased financial inclusion to 43.1% by 2022 and aims for 65% by 2028, while closing the gender gap from 53% to 22%. Digital transactions grew significantly, with over 537 million transactions totaling JOD 55.3 billion in 2024—equivalent to 146% of GDP. Fiscal Outlook: The government aims to reduce the primary deficit to 2% of GDP by 2025, targeting a primary surplus by 2027. The public debt-to-GDP ratio is expected to fall below 80% by 2028. Forward-Looking Plans: Preparations are underway for the 2026–2029 Executive Program of the Economic Modernization Vision, with new initiatives focusing on digitization, fintech, innovation, and expanded financial inclusion. Sectoral Collaboration & Private Dialogue Jordan Strategy Forum Chair Sharif Fares Sharaf emphasized the need for resilient policies amid global instability, while Executive Director Nisreen Barakat reaffirmed the Forum's role in facilitating evidence-based policy discussions. The session also featured input from Nadia Al-Saeed, who stressed the importance of regulatory clarity and effective banking oversight. Topics discussed included virtual asset legislation, SME support, and public-private partnerships in navigating economic uncertainties. Governor Al-Sharkas concluded with a direct Q&A session, addressing key economic concerns raised by forum participants and reaffirming the Central Bank's commitment to sustainable and inclusive growth.
