CBJ governor underlines resilience, stability of Jordanian economy

• Sharkas says exports grow by 3.8% to JD8.6b in 2024
• 'Jordanian expatriates' remittances in 2024 increase by 2.8% to JD2.6b'
• Sharkas says FDI reaches JD906 million in first 3 quarters of 2024

AMMAN — Central Bank of Jordan (CBJ) Governor Adel Sharkas on Saturday underlined the resilience and stability of the Jordanian economy, noting that it has "successfully weathered" regional and global challenges.

This stability, he said, has been underpinned by structural economic and fiscal reforms implemented in recent years, as well as "prudent" monetary policies by the CBJ, which have boosted the Kingdom's "economic defences."

Sharkas made his remarks during his participation at the 2025 Jordanian Banking Summit under the theme "Resilience and Innovation in the Banking Sector: Adapting to a Shifting Economy," hosted by the Association of Banks in Jordan (ABJ), Al Mamlaka TV reported.

The event brought together ABJ President Bassem Salem and senior banking executives and industry leaders.

The summit featured a panel of experts who explored key global and regional economic trends, highlighting the future outlook for banking, digital transformation and the role of fintech in reshaping financial operations.

Addressing the gathering, Sharkas reiterated the banking sector's support for His Majesty King Abdullah, praising his steadfast commitment to Jordan's national interests and his firm opposition to any form of forced displacement of Palestinians, in line with the principles of justice and international law.

Highlighting several positive economic indicators, particularly in Jordan's external sector, Sharkas noted that exports grew by 3.8 per cent in 2024, reaching JD8.6 billion, as Jordanian products expanded into new markets.

 He added that tourism revenues reached JD5.1 billion, driven by "strong" demand from Jordanian expatriates and Arab visitors, while remittances from Jordanians abroad increased by 2.8 per cent to JD2.6 billion.

Foreign direct investment (FDI) reached JD906 million in the first three quarters of 2024, despite regional uncertainties. Jordan's GDP grew by 2.4 per cent in the first nine months of 2024, exceeding IMF forecasts, with the central bank forecasting an increase to 2.7 per cent in 2025, he said.

On monetary policy, Sharkas reiterated the CBJ's unwavering commitment to maintaining financial stability.

He noted that foreign exchange reserves exceeded $21 billion at the end of 2024, dollarisation fell to 18.4 per cent, and inflation went down to 1.6 per cent in 2024 and is expected to remain around 2 per cent in 2025.

He also highlighted a recent decision to increase the central bank's capital to JD100 million from internal resources, enhancing its financial stability and monetary policy effectiveness.

For his part, Salem described the Jordan Banking Summit 2025 as an "important" platform to discuss evolving financial and economic trends in an increasingly complex world.

He highlighted the importance of preparedness, adaptability and innovation in addressing current challenges.

Salem noted that this year's reflects the sector's need to adapt to global economic changes, including inflation, CBJ policy changes and growing geopolitical uncertainty.

He highlighted the need for emerging markets to manage energy price volatility and financial disruption.

The ABJ president also noted the transformative impact of artificial intelligence (AI) on banking, which, while improving efficiency, raises critical questions about the future of employment in financial services.

Salem noted that the Kingdom's economy is projected to grow by 2.4 per cent in 2024, and by 2.9 per cent in 2025.

Inflation remains low and most sectors of the economy are expanding, with the exception of construction, which contracted by 1.5 per cent, he said, noting that exports grew by 5.2 per cent, narrowing the trade deficit, while unemployment fell to 21.5 per cent.

These trends, he said, reflect Jordan's ability to withstand economic pressures thanks to "sound" fiscal and monetary policies that have boosted international confidence and led to an improved credit rating for the first time in 21 years.