World Bank forecasts 2.5% economy growth for Jordan

AMMAN — The World Bank has forecasted that the Jordanian economy will achieve a growth rate of 2.5 per cent in 2024, rising to 2.6 per cent during the years 2025 and 2026.

In its latest edition of the "Global Economic Prospects" report, the bank indicated that the forecast for stable economic growth in Jordan comes despite the significant impact on tourism-related activities due to the war on the Gaza Strip, the Jordan News Agency, Petra, reported.

The report noted that growth in the Middle East and North Africa is expected to rebound this year to 2.8 per cent and further to 4.2 per cent in 2025, driven by a gradual increase in oil production and improved activity since the last quarter. Projections for 2024 are lower compared with those made in January.

Growth in the Gulf Cooperation Council countries is expected to rise to 2.8 per cent this year and 4.7 per cent next year. For oil-importing countries, growth is projected to increase to 2.9 per cent this year and then to 4 per cent annually during 2025 and 2026.

The report also warned of negative risks threatening the region, including the potential escalation of conflicts, the tightening of global conditions leading to capital outflows, and currency depreciation in oil-importing countries. 

Countries with high government debt will face increased debt servicing burdens due to higher borrowing costs and heightened risks of financial instability.