S&P maintains Jordan’s long-term sovereign credit rating at BB- with stable outlook

AMMAN — Standard & Poor’s (S&P) has maintained Jordan’s long-term sovereign credit rating at BB, with a stable outlook.

In its report, the agency pointed out that the decision to maintain the rating reflects its expectation that Jordan will be able to manage regional and global economic developments, in addition to the country's capacity to secure alternative financing sources, such as the International Monetary Fund (IMF), the World Bank, and the European Union.

S&P global rating agency noted that the stable outlook for the Jordanian economy comes amid improvements resulting from fiscal and economic reforms and resilient economic growth.

The leading credit ratings provider has also expected Jordan’s economy to grow by 2.7 per cent in 2025, given regional developments, the recovery of the tourism sector, and a gradual increase in trade with Syria and Iraq. The agency expects growth to reach 3 per cent in the years 2026-2027.

Regarding public finances, the agency expects the budget deficit to decrease to 2.3 per cent of GDP in 2025, compared to 2.8 per cent in 2024. It also anticipates that the debt-to-GDP ratio will gradually decrease in the coming years.

As for monetary policy, the agency pointed out that the peg of the Jordanian Dinar to the US Dollar has contributed to price stability and contained inflation rates. The agency expects inflation to remain at acceptable levels in 2025, reaching 2.2 per cent. The agency also noted a decline in the current account deficit, which is expected to reach 4.5 per cent of GDP in 2024, the lowest level since 2019.

Commenting on the S&P report, Minister of State for Economic Affairs Mohannad Shehadeh said that the government is committed to implementing a set of mega projects that will contribute to enhancing economic growth rates and increasing job opportunities, which will contribute to strengthening the macroeconomic environment and ensuring the sustainability of public finances, the Jordan News Agency, Petra, reported. 

Minister of Planning and International Cooperation Zeina Touqan said that the support Jordan receives from all international partners, along with the continued implementation of structural reforms, has helped bolster the resilience of the national economy and stabilise economic growth rates despite the ongoing developments in the region. 

Minister of Finance Abdul Hakim Shibli explained that the decision of Standard & Poor’s to maintain Jordan's credit rating without change, after the agency upgraded Jordan’s rating in its last review in September 2024, “reflects the high level of trust in the national economy by international institutions despite recent regional security developments and global economic changes,” Petra reported. 

Governor of the Central Bank of Jordan (CBJ) Adel Sharkas indicated that the “decision by Standard & Poor’s to maintain the long-term sovereign credit rating of Jordan at BB- with a stable outlook, which comes at a time when the region and the world are witnessing many economic and geopolitical changes impacting global market performance, affirms the strength of Jordan's economic foundations and its ability to absorb challenges with high flexibility and efficiency.”