"Fitch" raises its growth forecasts for the Jordanian economy following strong second-quarter performance

"Fitch": Tourism is one of the most prominent sources of economic support, with rising visitor numbers from Turkey, Iraq, and Syria

"Fitch": Favorable conditions supported agricultural production, and workers' remittances provided additional support to households

Fitch Solutions has raised its real GDP growth forecast for Jordan in 2026 to 2.6%, compared to its previous forecast of 2.1%, in light of the economy recording a stronger-than-expected performance during the second quarter of the year.

According to a report by Fitch Solutions, viewed by "Al-Mamlaka," the Jordanian economy recorded 3% year-on-year growth during the second quarter, exceeding expectations. The report attributed this to the containment of price pressures during the initial stages of the US-Iranian conflict, increased logistical activity at the Port of Aqaba, and favorable conditions that supported agricultural production.

It noted that the revision of growth forecasts reflects economic performance that has demonstrated resilience, pointing out that the expected growth for 2026 is 2.6%.

The report described the tourism sector as the main source of support for the Jordanian economy, noting that the increase in the number of visitors from neighboring markets, particularly Turkey, Iraq, and Syria, has offset the decline in visitor numbers from Western markets.

It added that domestic tourism provided additional support to the sector, assisted by the government-subsidized "Jannah" (Our Jordan is a Paradise) program.

It indicated that the tourism sector accounts for between 14% and 16% of the GDP and provides job opportunities for a broad segment of the workforce.

The report suggested that a decline in regional security risks would likely lead to an increase in the number of tourists coming from Europe and the United States, with the tourism recovery expected to concentrate during the second half of 2027, provided an initial agreement is reached between the United States and Iran during the first quarter of the same year.

Agricultural production and workers' remittances

In the agricultural sector, the report explained that favorable conditions contributed to supporting agricultural production, which was one of the factors that helped the Jordanian economy record higher-than-expected growth during the second quarter of 2026.

It noted an increase in workers' remittances to Jordan during the US-Iranian conflict, considering them a source of additional support for households and a contributor to sustaining domestic consumption.