FX.co ★ IMF Releases $130 Million to Jordan

The International Monetary Fund (IMF) has allocated $130 million to Jordan, as part of a wider $1.2 billion extended fund facility that was greenlit back in January 2024. This financial support underscores the IMF's trust in Jordan’s economic governance despite facing challenging geopolitical circumstances. The Jordanian economy has displayed notable resilience, buoyed by sound policies and international assistance, with a GDP growth rate of 2.5% in 2024 and an inflation rate staying under 2%. Although there has been a dip in revenue, the fiscal deficit target was successfully met, even as the current account deficit increased slightly to 5.9% of GDP due to a downturn in tourism earnings. Looking ahead to 2025, GDP growth is projected to climb to 2.7%, driven by an upturn in domestic activity, tourism, and investment. Inflation is anticipated to remain low, backed by the central bank's dedication to maintaining monetary stability and an exchange rate peg. Jordan's banking sector continues to be strong, and in the long term, growth may surpass 3%, powered by substantial investments and deeper regional economic integration.