Moody's expects Jordan’s economy to grow by 3% in 2027

AMMAN – The global credit rating agency, Moody's, has reaffirmed that Jordan's economy remains resilient despite regional geopolitical tensions, high debt levels, and unemployment pressures.

In its latest review, Moody's maintained Jordan's long-term local and foreign currency issuer ratings to Ba, citing strong institutional frameworks and significant international financial support, the government-owned Al Mamlakah TV reported.

The agency also noted that Jordan benefits from substantial domestic savings and its access to global markets, contributing to its financial stability.

Looking ahead, Moody's forecast that Jordan’s economic growth will continue at a moderate pace, reaching approximately 2.5 per cent in 2025, with a gradual increase to 3 per cent in 2026 and 2027.

The sovereign credit rating agency said that the growth is expected to be driven by the tourism sector and regional trade, particularly with Lebanon and Syria, which will support local production. Key infrastructure projects, including a major water desalination initiative in Aqaba, are also expected to contribute to the economic expansion.

In terms of fiscal performance, Moody's observed an expected improvement in the government’s fiscal performance, with the budget deficit narrowing to about 2 per cent of GDP in 2025, supported by fiscal reforms and ongoing cooperation with the International Monetary Fund.

However, the agency cautioned that new tariffs imposed by the United States could negatively impact Jordanian exports, particularly in the apparel and textile sectors, which represent 5-6 per cent of the country’s GDP.