A staff team from the International Monetary Fund (IMF), led by César Serra, visited Amman from September 28 to October 7, 2025, to discuss the fourth review of Jordan’s economic reform program under the Extended Fund Facility (EFF) and the first assessment of Reform Measures under the Resilience and Sustainability Facility (RSF) arrangement. The EFF was approved by the IMF’s Executive Board in January 2024, and the RSF arrangement was approved in June 2025.
At the end of the mission, César Serra stated: “We are pleased to announce that the IMF team and the Jordanian authorities reached a staff-level agreement on the fourth review of the authorities’ economic reform program supported by the EFF arrangement, approved in January 2024. Program performance continues to be strong, despite a challenging external environment reflecting lingering regional tensions and heightened global economic uncertainty. All quantitative performance criteria and all but one structural benchmark for the fourth review were met and steady progress is being made toward achieving the program’s overall objectives. Moreover, the authorities are making progress towards implementing forthcoming Structural Benchmarks. The agreement is subject to approval by the IMF’s management and the Executive Board. The completion of the EFF review will make SDR 97.784 million (about US$130 million) available, out of the approved program size of SDR 926.370 million (about US$1.2 billion). Completion of the first RSF review will make SDR 79.182 million (about US$114 million) available, out of the approved SDR 514.650 million (about US$744 million).
“Jordan’s economy continues to show resilience, thanks to the authorities’ steady pursuit of sound macro-economic policies and strong international support. For the first half of 2025, growth accelerated to 2.7 percent, reflecting a broad-based expansion of economic activity. The authorities over-performed the program targets for the fourth review and are on track to meet this year’s budget deficit targets, reflecting the authorities’ strong measures to enhance revenue collection and broaden the tax base. The current account deficit is expected to narrow to about 5 percent of GDP, supported by higher tourism and export receipts. Inflation is expected to remain anchored at about 2 percent, reflecting the CBJ’s unwavering commitment to maintaining monetary stability and safeguarding the peg, which is supported by strong international reserves. The banking sector remains sound, with ample liquidity and strong capital buffers. Barring additional shocks, growth is expected to accelerate further in the coming years, to over 3 percent, also supported by several large investment projects, including the Aqaba Amman Conveyor. Deeper regional economic integration, notably with Syria, Lebanon, and Iraq, could further enhance growth prospects.
“The authorities remain committed to placing public debt on a steady downward path through a gradual fiscal consolidation while protecting priority social and development spending. To achieve this, and to cement the progress made in the last few years, the authorities are committed to continuing efforts at mobilizing revenues, improving spending efficiency, and ensuring the financial sustainability and efficiency of public utilities. These efforts will continue in 2026–28, aiming to bring public debt to 80 percent of GDP by 2028.
“The authorities are determined to step up the pace of structural reforms to achieve stronger growth and generate more jobs, which is particularly important given that unemployment remains high, particularly among the youth and women. Reforms will focus on improving the business environment to attract more investment, by enhancing competition and labor market flexibility, while further strengthening the social safety net. Efforts will also focus on streamlining regulation and digitalization of government services, including tax and customs administrations.
“Progress was made in implementing the RSF supported engagement approved in 2025 with the aim of addressing Jordan’s long-term vulnerabilities in the water and electricity sectors and enhancing its ability to address health emergencies, including future pandemics. The two RSF Reform Measures scheduled for this review are on track to be completed.
“The staff team is grateful to the authorities for the candid and constructive discussions. The team met with Prime Minister Hassan, Minister of State for Economic Affairs Shehadeh, Minister of Finance Shibli, Minister of Planning and International Cooperation Toukan, Governor of the Central Bank of Jordan Al-Sharkas, and other Ministers and senior government and CBJ officials.”