Amman: The International Monetary Fund (IMF) announced on Wednesday that it has reached a staff-level agreement with the Jordanian government on the fifth review of the economic reform program under the Extended Fund Facility (EFF) arrangement, as well as the second review under the Resilience and Sustainability Facility (RSF).
According to Jordan News Agency, IMF Chief of Staff Cesar Serra stated that the Jordanian economy has continued to demonstrate resilience, supported by the government's commitment to prudent macroeconomic policies and strong international backing. Real Gross Domestic Product (GDP) growth reached 2.8 percent in 2025, with expectations of strengthened growth momentum in early 2026.
Serra highlighted that the Central Bank of Jordan has maintained inflation below 2 percent, attributing this to its commitment to monetary stability and substantial foreign exchange reserves. The banking sector remains sound with strong liquidity and capital buffers. Government measures are in place to mitigate the economic impact of ongoing regional conflicts, including rising energy costs and disruptions to tourism, while maintaining fiscal and monetary discipline.
Key measures implemented by the government include safeguarding energy security, ensuring continuity of supply chains, maintaining adequate liquidity in financial markets, and providing targeted support to vulnerable groups. Program performance remains robust, with all quantitative performance criteria for the fifth EFF review met comfortably, and structural benchmarks on track.
The government commits to reducing public debt to 80 percent of GDP by 2028 through revenue-enhancing measures and improved spending efficiency. Completion of the fifth EFF review will unlock approximately $140 million, while the second RSF review will release about $57 million. Structural reforms are essential for supporting private sector growth, improving the business environment, enhancing competition, labor market flexibility, and strengthening the social safety net.
Additionally, the Central Bank of Jordan, in cooperation with the World Bank, has issued executive regulations on climate-related disclosure and reporting, aligning with Basel Committee on Banking Supervision guidelines and sustainability standards. The agreement followed intensive discussions over the past two weeks between IMF staff and Jordanian officials, including Minister of State for Economic Affairs Muhannad Shehadeh, Minister of Finance Abdelhakim Shibli, Minister of Planning and International Cooperation Zeina Toukan, and Central Bank of Jordan Governor Adel Sharkas.