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Jordanian Economy Records 3% Growth in Q2 2026

Jordanian Economy Records 3% Growth in Q2 2026

The Jordanian economy recorded a 3% growth during the second quarter of 2026, compared to 2.8% during the same period in 2025, driven by improved performance of productive sectors, despite regional challenges and disruptions.

Economic expert Hashem Aql said that the growth rate reflects the Jordanian economy's ability to adapt to regional circumstances, pointing to a number of positive economic indicators, including lower inflation rates, strong foreign reserves, and continued international support within the International Monetary Fund program.

Aql explained that the productive sectors showed a noticeable improvement, with the agricultural sector growing by 7.8%, manufacturing industries by 6.2%, electricity by 5%, and water by about 4.1%, while manufacturing industries contributed about 1.04 percentage points of total growth, and agriculture about 0.34 percentage points.

He pointed out that the sectors capable of leading growth in the coming phase include agriculture and food industries, manufacturing and mining industries, energy, electricity and water, in addition to trade, transport, tourism, technology and innovation.

He explained that enhancing these sectors requires accelerating the implementation of the economic modernization vision projects, improving the business and investment environment, supporting exports through trade agreements and developing logistics services, along with developing skills, linking growth to the labor market, and enhancing public-private partnerships.

Aql pointed out that the continuation of growth faces challenges, most notably political tensions and disruptions in the region, rising unemployment among Jordanians to about 21%, public debt and fiscal deficit, in addition to the risks of rising energy and food prices and disruption of supply chains.

He stressed that maintaining growth exceeding 3% to 4% sustainably requires cautious monetary and fiscal policies, structural reforms, diversification of growth and energy sources, enhancing exports, and investing in productive sectors.

On the other hand, economic expert Hossam Ayash said that the importance of recording 3% growth increases given the circumstances under which it was achieved, in light of the repercussions of the war and disruptions that affected energy prices, shipping, and essential goods supply chains.

Ayash explained that government measures to deal with the repercussions of regional conditions, along with strategic reserves and economic projects, helped maintain local activity, while Jordan's geographical location and infrastructure supported economic, commercial activity, and benefited from regional markets.

He pointed out that national exports increased by 6.4% during the first seven months of the year compared to the same period in 2025, while re-exports increased by 67%, stressing the importance of building on this improvement by expanding the export base and opening new markets.

Ayash called for continuing to support industry, agriculture, and energy, increasing local and foreign investments in productive sectors, raising the value added of products, enhancing innovation, technology, quality, and competitiveness, along with reducing production and energy costs and reviewing financing costs.

He stressed the need to link government incentives to investment, job opportunities, exports, and value added, and directing investments towards sectors capable of providing job opportunities and increasing production, thereby enhancing citizen benefit from growth through improving income, purchasing power, and living standards.

The recorded growth reflects an improvement in the performance of productive sectors, while the continuation of this path depends on the economy's ability to convert current growth into sustainable increases in production, investment, exports, and job opportunities.

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