Amman: The International Monetary Fund (IMF) Executive Board has completed the fourth review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF) arrangements with Jordan. This completion grants the Jordanian authorities immediate access to approximately US$130 million under the EFF and about US$110 million under the RSF, aiding the Kingdom's economic program.
According to Jordan News Agency, this latest disbursement increases the total funds provided under the arrangement to approximately $733 million. The IMF has stated that Jordan's economy remains resilient, with sound macroeconomic policies and robust international support. Economic growth accelerated to 2.7 percent in the first half of 2025 and is projected to reach 3 percent in the coming years, driven by substantial investment projects, enhanced regional integration, and ongoing structural reforms.
Inflation is stable at around 2 percent, and the current account deficit is anticipated to reduce to below 5 percent of GDP over the medium term. The banking sector's stability and strong international reserves further support this outlook. Fiscal performance aligns with program targets, characterized by robust revenue collection and disciplined current spending. The authorities aim to reduce public debt to 80 percent of GDP by 2028 through gradual fiscal consolidation while safeguarding social and development spending.
The IMF emphasized the importance of accelerating structural reforms to achieve stronger growth and job creation. Reforms are underway to stimulate investment, enhance competition, improve labor market flexibility, and bolster the social safety net, alongside digitalizing government services.
Progress under the RSF is ongoing, with measures targeting vulnerabilities in the water and electricity sectors and boosting health emergency preparedness. The two RSF Reform Measures scheduled for this review have been successfully completed.
Following the Executive Board discussion, Kenji Okamura, Deputy Managing Director and Chair, remarked on Jordan's continued macroeconomic stability and resilience amid persistent external challenges. The authorities' commitment to sound fiscal and monetary policies is vital for safeguarding macroeconomic stability. The recalibrated fiscal stance for 2026 is deemed appropriate, supporting gradual fiscal consolidation while protecting social and capital spending.
Monetary policy remains focused on maintaining monetary and financial stability and supporting the exchange rate peg. The banking sector remains healthy, and ongoing efforts to strengthen the AML/CFT framework are welcomed.
Accelerated structural reforms are essential for fostering a dynamic private sector and promoting job-rich growth. The authorities are implementing measures to improve the business environment, promote competition, enhance labor market flexibility, and attract private investment. Continued strong and timely donor support is crucial for Jordan to navigate external challenges and meet development goals, particularly in hosting a large number of refugees.
The solid progress in implementing the reform measures under the Resilience and Sustainability Facility will aid in addressing long-term economic vulnerabilities and strengthening Jordan's balance of payments stability.