IMF, Jordan reach staff-level agreement on economic reform reviews

The International Monetary Fund (IMF) has reached a staff-level agreement with Jordan on the fourth review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF). The completion of the reviews will unlock about $244 million for Jordan — $130 million under the EFF and $114 million under the RSF — within total programmes valued at roughly $1.9 billion.

The IMF said Jordan’s economy remains resilient, with growth rising to 2.7 per cent in the first half of 2025 and projected to exceed 3 per cent in the coming years. Inflation is expected to stay anchored around 2 per cent, while the current account deficit is set to narrow to about 5 per cent of GDP this year.

Jordan continues to strengthen revenue collection and preserve monetary stability, backed by strong international reserves and a solid banking sector. Growth is also expected to be supported by major investment projects, including the Aqaba-Amman Conveyor, alongside deeper regional economic integration.

The IMF noted that Jordan’s government plans to reduce public debt to 80 per cent of GDP by 2028 through gradual fiscal consolidation, improved spending efficiency, and sustainable management of public utilities. Structural reforms will remain focused on stimulating private investment, creating jobs, and advancing the digitalisation of government services.

Under the RSF, Jordan is progressing with reforms in the water and electricity sectors and enhancing its capacity to respond to health emergencies, with all measures scheduled for the first review on track for completion.