Jordan's economy posts 2.7% growth amid regional challenges
Foreign reserves at the Central Bank of Jordan reached $22.8 billion by the end of May, sufficient to cover the Kingdom's imports of goods and services for 8.8 months.
Inflation remained contained at around 2 per cent during the first five months of the year.
The banking sector also saw "notable" growth. Customer deposits rose by 6.8 per cent year-on-year to JD47.3 billion by the end of April, while credit facilities extended by banks increased by 3.4 per cent to JD35.2 billion.
Tourism revenue surged by 15.7 per cent during the first five months of the year, reaching $3.1 billion. Worker remittances rose by 3 per cent in the same period to $1.2 billion.
Jordan recorded a GDP growth rate of 2.7 per cent in the first quarter of 2025, an improvement that economists say marks a gradual but meaningful recovery.
"This 2.7 per cent growth is a healthy and positive sign, especially given that the past four years did not see this level of performance," former minister of economy Yousef Mansour said in remarks to the Jordan News Agency, Petra.
He noted that the growth represents a half-point increase over the same period last year.
Mansour underlined the role of the manufacturing sector as a key driver of growth, and pointed to a slight dip in unemployment, down 0.1 per cent, as an early sign of momentum in the labour market.
"Economic growth rarely jumps suddenly unless driven by major external factors," Mansour said, referencing the 2004–2008 influx of Iraqi capital into Jordan. "Achieving 0.5 per cent growth internally, without external stimulus, is a noteworthy accomplishment."
Echoing the same remarks, Economist Hussam Ayesh said that the latest figures reflect the economy's resilience, especially in light of ongoing regional instability, including the war in Gaza.
"The growth achieved shows that Jordan's economy can absorb shocks and move toward recovery," Ayesh said, adding that the performance sends a 'strong' message to investors about the strength of Jordan's economic policy framework.
While he acknowledged that the 2.7 per cent growth figure does not mark a "quantum leap," he said it remains a 'significant' signal amid regional and global uncertainty, particularly in the face of high energy costs and volatile markets.
Ayesh also noted robust growth in the agricultural sector, up 8.1 per cent, as well as improvements in the electricity and water sectors. However, he cautioned that tourism, transportation and construction remain weak due to continued geopolitical tensions.
Economist Adly Qandah said that the growth figures suggest a gradual recovery in productive sectors, despite ongoing challenges such as gas supply disruptions and regional conflict.
He pointed to agriculture and manufacturing, growing by 8.1 per cent and 5.1 per cent respectively, as key contributors.
Still, he warned that these sectors alone cannot drive structural transformation, especially as labour-intensive industries like tourism and construction remain sluggish.
Qandah called for "smart investment policies, real job creation, and innovation stimulation so that growth translates into meaningful change in citizens' lives."
Professor of Finance at Al Al-Bayt University Omar Gharaybeh said that the 2.7 per cent growth rate underlines the national economy's flexibility and the success of government policies despite mounting regional pressures.
"Jordan's political and monetary stability, combined with sectorial diversity, has helped support economic performance," he said.
Growth across agriculture, manufacturing and energy, he added, has reduced dependence on any single sector, making the economy more resilient to external shocks.
© Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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