IMF completes first review of Kingdom’s economic programme, approves $130 million

AMMAN — The Executive Board of the International Monetary Fund (IMF) completed the first review of Jordan’s programme supported by the Extended Fund Facility(EFF).

The completion of the review makes another $130 million available to Jordan, out of the previously approved programme size of $1.2 billion and equivalent to 270 per cent of Jordan’s quota, according to a statement by the IMF.

Jordan’s economy continues to show resilience, including in the face of the challenges posed by the Israeli war on Gaza and the disruptions to trade in the Red Sea, the statement added.

This reflects the strong progress that Jordan has made in recent years thanks to the steadfast implementation of sound macro-economic policies and structural reforms that have strengthened the country’s resilience and enabled it to weather the impact of successive external shocks.

The economy continues to grow, with growth projected to moderate to 2.4 per cent in 2024, after having reached 2.6 per cent in 2023.

Growth is expected to pick up pace in 2025, contingent upon the war ending and its impact fading. Inflation is low and reserve and reserve buffers are strong, the statement said.

"Despite this strong performance, challenges remain. Unemployment remains high.

Importantly, the unsettled regional situation weighs on Jordan’s near-term outlook," the statement added.

Strong international support remains needed to support the authorities’ policy efforts and to help shoulder the cost of hosting a large number of Syrian refugees, according to the IMF.

The authorities remain firmly committed to sound macro-economic policies and advancing structural reforms, to maintain macro stability, further strengthen economic resilience and foster stronger, job-rich growth and improved living standards for all Jordanians.

Fiscal policy remains focused on continuing to reduce public debt through a gradual fiscal consolidation while expanding targeted support to vulnerable households and creating more room for public

investment, the IMF said.

The adverse impact of the war on growth and investment underscores the need to continue with and accelerate, structural reforms, to improve the viability of public utilities and create a more dynamic private sector that can create more jobs and achieve the goals of the authorities’ Economic Modernisation Vision, the statement said.