IMF completes 1st Jordan review

The International Monetary Fund (IMF) Executive Board has completed the first review of Jordan’s Extended Fund Facility (EFF) programme, unlocking approximately $130 million for the country.

According to the IMF report, Jordan has met all performance criteria and structural benchmarks for the review, showcasing its commitment to the programme. Despite a challenging external environment, including the Israeli aggression against Gaza and Red Sea trade disruptions, Jordan’s economy remains resilient due to robust macroeconomic policies and structural reforms implemented over recent years.

Moreover, Jordan’s economic performance has been notable, with growth projected at 2.4 per cent in 2024, slightly down from 2.6 per cent in 2023.

Inflation remains low, and reserve buffers are strong. However, high unemployment and regional instability present ongoing challenges. Strong international support is deemed essential to aid Jordan’s policy efforts, particularly in supporting the large number of Syrian refugees it hosts.

The IMF’s review highlights the importance of continued fiscal consolidation, targeted support for vulnerable households, and public investment to sustain growth and stability.

The IMF also stresses the need for accelerated structural reforms to enhance public utilities and foster a dynamic private sector capable of creating jobs, aligning with Jordan’s Economic Modernization Vision.

Attribution: IMF.