A staff team from the International Monetary Fund (IMF), led by Ron van Rooden, has concluded a mission to the Kingdom recently, as part of the third review under Jordan’s economic reform program supported by the Extended Fund Facility (EFF).
The mission also engaged in initial discussions regarding a prospective arrangement under the IMF’s Resilience and Sustainability Facility (RSF), the Jordan News Agency, Petra reported.
The IMF team and the Jordanian authorities had reached a staff-level agreement on the third review, Petra reported.
“Subject to approval by IMF management and the Executive Board, the agreement would make available SDR 97.784 million (approximately USD 130 million), out of a total program size of SDR 926.370 million (about USD 1.2 billion),” Petra said, citing an IMF statement.
”Programme performance continues to be strong, despite a challenging external environment,” van Rooden said in the statement.
“All quantitative performance criteria for the third review were met, and steady progress is being made toward achieving the program’s overall objectives, including key structural benchmarks.
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According to the IMF, Jordan maintained macroeconomic stability in 2024, achieving 2.5 per cent GDP growth and keeping inflation under 2 per cent.
Fiscal performance remained solid, with the budget deficit target met through strong policy measures despite a decline in domestic demand and export prices.
Growth is projected to accelerate to 2.7 per cent in 2025, driven by a recovery in domestic economic activity, a rebound in tourism, and increased foreign investment inflows, according to IMF.
The IMF acknowledged Jordanian authorities’ commitment to advancing structural reforms aimed at fostering stronger growth and job creation, particularly to address high unemployment among youth and women.
Reform priorities include improving the business climate, enhancing competition, increasing labor market flexibility, and expanding the social safety net.
Additionally, the government plans to further streamline regulations and digitize public services, including tax and customs administration.
The IMF staff will submit their findings to IMF management and the Executive Board for consideration and final decision, according to Petra.