IMF disburses $130m to Jordan

The International Monetary Fund (IMF) has disbursed $130 million to Jordan following the completion of the second review of its $1.2 billion Extended Fund Facility (EFF) programme. Total disbursements under the arrangement now amount to $453 million.

Jordan’s economic growth is forecast to slow to 2.3 per cent in 2024, down from 2.7 per cent in 2023, as regional unrest impacts government finances and dampens domestic demand. Inflation is expected to remain low at 2 per cent, while the current account deficit is projected to widen slightly to under 5 per cent of GDP.

The IMF commended Jordan’s resilience, highlighting its sound macroeconomic policies and reform progress. However, unemployment remains high at 21 per cent.

To address these challenges, the government is pursuing fiscal consolidation, structural reforms, and measures to enhance public utilities’ efficiency.

The IMF stressed the need for accelerated reforms to stimulate private sector growth, improve job creation, and increase female labour participation. It also underscored the importance of sustained international support to help Jordan manage refugee-related costs and achieve its development goals.

Attribution: IMF

Subediting: M. S. Salama