The International Monetary Fund announced on Tuesday that it has reached a preliminary agreement with Jordanian officials that paves the way for the disbursement of an additional $294 million under a four-year financial support program for the country.
Jordan's Strong Performance in Difficult Conditions
César Sera, head of the IMF mission in Jordan, stated in a statement that the country's performance in implementing economic reform programs has remained strong despite ongoing challenges and increasing uncertainty due to the prolonged conflict in the Middle East. He added that Jordan has met all quantitative performance criteria and most of the structural reform objectives set for the sixth review of this program, making progress towards achieving its overall goals.
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Economic Challenges and Resilience of Jordan
In 2024, Jordan began implementing a financial support program worth nearly $1.2 billion with the International Monetary Fund, and a year later, an additional $700 million was added to the financial resources of this program. The new payment still requires approval from the Fund's executive board.
The U.S.-Israel war with Iran, which began in late February, has led to widespread conflicts in the region. Tehran's retaliatory attacks have also targeted Washington's allies, including Jordan. However, Jordan has remained shielded from the most severe economic consequences of the war; consequences that have particularly affected oil-exporting countries in the region due to widespread disruptions in transportation from the Strait of Hormuz.
While the economic growth outlook for Jordan's neighboring countries has significantly weakened, the International Monetary Fund has kept its forecast for Jordan's economic growth in 2026 nearly unchanged at 2.7 percent. César Sera stated that Jordan's economy continues to show resilience, which he attributes to the commitment of the country's officials to prudent economic policies and broad support from international partners.
The International Monetary Fund, while welcoming Jordan's economic reform program, called for further efforts to enhance competitiveness in the private sector, increase labor market flexibility, and encourage businesses to operate in the formal economy. Jordan has had several financial cooperation programs with the International Monetary Fund since 1985 and is required to repay about $480 million of its debts to the institution by the end of 2027.
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