The Executive Board of the International Monetary Fund (IMF) has completed the third review of Jordan’s four-year Extended Fund Facility (EFF) arrangement, unlocking a new disbursement of approximately $134 million. This brings total IMF support under the EFF to about $595 million since the program’s inception in January 2024.
Approved in early 2024, Jordan’s EFF arrangement provides access to SDR 926.37 million (approximately $1.3 billion, equivalent to 270 percent of the country’s IMF quota). The program is designed to support macroeconomic stability, fiscal sustainability, and structural reforms amid ongoing regional challenges.
In a further vote of confidence, the IMF Executive Board also approved a Resilience and Sustainability Facility (RSF) arrangement for Jordan, granting access to SDR 514.65 million (around $700 million, or 150 percent of Jordan’s quota). The RSF aims to enhance Jordan’s long-term resilience by addressing vulnerabilities in critical sectors such as water, energy, and public health.
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Stronger-than-expected growth amid regional headwinds
Despite geopolitical tensions and economic uncertainty in the region, Jordan’s economy has shown notable resilience. Economic growth reached 2.5 percent in 2024, outpacing earlier projections, and is expected to gradually accelerate in the coming years. This momentum is supported by continued fiscal discipline, monetary stability, and a commitment to structural reforms.
Inflation remains contained, underpinned by the Central Bank of Jordan’s (CBJ) prudent policies and the maintenance of the exchange rate peg. The external sector remains stable, with the current account deficit hovering near 6 percent of GDP.
Meanwhile, international reserves exceeded $20 billion at the end of 2024 — well above IMF adequacy thresholds — signaling strong external buffers.
Fiscal consolidation and reform priorities
The Jordanian authorities continue to implement gradual fiscal consolidation, aiming to reduce public debt while safeguarding essential social spending and public investment.
Structural reforms under the EFF focus on promoting private sector-led, inclusive growth — particularly through labor market enhancements and improved business conditions.
Efforts are also being made to expand economic opportunities for youth and women, a long-standing structural challenge that the government is addressing through targeted policies and initiatives.
RSF to boost resilience in key sectors
The newly approved RSF arrangement will support critical reforms in energy and water infrastructure, sectors long burdened by financial inefficiencies and sustainability challenges. Key objectives of the RSF program include:
- Enhancing financial sustainability and efficiency in the energy sector
- Improving water management and financial viability of the water sector
- Strengthening fiscal and financial resilience
- Boosting preparedness for future pandemics and public health crises
These reforms are expected to create more fiscal space, reduce sectoral vulnerabilities, and help Jordan better absorb future economic shocks.
A vote of confidence in Jordan’s leadership
The IMF praised the Jordanian authorities for their strong reform agenda and for consistently meeting program targets. The IMF underscored the importance of maintaining reform momentum to safeguard macroeconomic stability and unlock sustainable, inclusive growth.
The dual IMF arrangements — the EFF and the RSF — represent a significant financial and strategic commitment to Jordan’s economic future. Together, they aim to stabilize the economy in the short term, while laying the groundwork for long-term resilience and development.
Following the Executive Board’s discussion on Jordan, Kenji Okamura, IMF deputy managing director and acting chair, issued the following statement: “Jordan continues to maintain macroeconomic stability despite external headwinds from regional conflicts and heightened global economic uncertainty, owing to the authorities’ steadfast pursuit of sound policies and continued strong international support.
“Growth in 2024 and so far in 2025 ended up stronger than anticipated, inflation is low, and reserve buffers are strong. Against elevated risks in the region, it is important that the authorities stay the course with sound fiscal and monetary policies to safeguard macroeconomic stability.
“The authorities continue to make progress with a gradual fiscal consolidation and strengthening fiscal sustainability, thanks to fiscal reforms that have improved revenue administration and expenditure efficiency.
“Looking ahead, efforts should continue to further enhance revenue mobilization and spending efficiency and to take contingency measures as needed to keep public debt on a steady downward path, while protecting priority social and capital spending. Efforts should also continue to improve the efficiency and viability of the public utilities to preserve the sustainability of public finances, while improving service delivery.
“Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that has served Jordan well and helped keeping inflation low. Jordan’s banking sector remains healthy, and the central bank continues to strengthen its systemic risk analysis, financial sector oversight, and crisis management.
“Structural reforms should be accelerated to improve the business environment, promote competition, and attract private investment that is crucial to create a dynamic and resilient private sector, foster job-rich growth, and achieve the objectives of Jordan’s Economic Modernization Vision. Strong and timely donor support remains essential to help Jordan navigate the challenging external environment, host the large number of refugees, and meet Jordan’s development objectives.
“The reforms under the Resilience and Sustainability Facility aim to support the authorities’ efforts to address long-term vulnerabilities in the water and energy sectors and to be better prepared for public health emergencies, including pandemics.
“These reforms will strengthen Jordan’s balance of payments stability by promoting economic resilience and sustainability and by augmenting policy space and financial buffers to mitigate risks arising from these challenges.”
