European Bank for Development: Jordan's Economy Surpassed Regional Crisis Impact

Praise for the Central Bank's Prudent Monetary and Fiscal Policies

Growth Drivers Based on a Balanced Sectoral Base

Jordan Emerged as the Most Resilient and Stable Economy in the Region

The Jordanian economy has shown a remarkable ability to overcome the geopolitical difficulties and challenges in the region and adapt to regional changes, achieving an annual growth rate of 2.9% in the first quarter of this year, surpassing the performance recorded in the past two years.

The European Bank for Reconstruction and Development, in its latest report released today, Thursday, titled "Regional Economic Outlook: Resource Drought," expects the national economy's growth rate to reach 2.8% next year, 2027. The report confirmed that the Kingdom's productive diversity and prudent monetary policies enabled the national economy to avoid the effects of tensions and disruptions in shipping and trade lines in the region.

The report confirmed that the growth drivers in Jordan were based on a balanced sectoral base that succeeded in limiting the impact of regional uncertainty, as the agriculture, manufacturing, and trade sectors led the growth path, partially compensating for the slowdown in activity in the mining, construction, and tourism-related services sectors.

It was noted that the productive sectors demonstrated high flexibility in absorbing the temporary decline in energy supplies and tourism movement during March last year.

The European Bank praised the prudent monetary and fiscal policies adopted by the Central Bank of Jordan, noting that the Kingdom has a solid safety margin to protect its economic stability, as foreign reserves reached $26.5 billion as of July of this year.

The report described the Kingdom's foreign currency reserves as very comfortable levels, covering the country's needs for imports of goods and services for more than 8 months.

The report pointed to a decrease in the current account deficit during the first quarter of this year, supported by the strength of remittances from Jordanians working abroad and a decline in imports.

The report noted that the inflation rate dropped to 2.7% in July, after reaching its peak at 2.8% in May of this year.

The report noted the Central Bank's decision to raise the interest rate by 25 basis points to enhance the attractiveness of investment in the Dinar and maintain the stability of the Dinar's peg to the Dollar.

In another context, the report explained the varying economic performance in the South and East Mediterranean region, where Jordan and Egypt emerged as the most resilient and stable economies in the region, while other economies such as Lebanon and Iraq faced contraction and a sharp decline in oil exports and infrastructure damage.