Standard & Poor's (S&P) has affirmed Jordan's long-term sovereign credit rating in both local and foreign currency at BB-, with a stable outlook.
اضافة اعلان
According to a report cited by "Al-Mamlaka" website, the agency stated that the decision to affirm the rating was based on its expectation that Jordan can manage economic developments in the region and globally, as well as its ability to secure alternative funding sources such as the International Monetary Fund (IMF), the World Bank, and the European Union.
The agency highlighted that Jordan's stable economic outlook is a result of financial and economic reforms, as well as resilient economic growth.
S&P forecasted that Jordan's economy would grow by 2.7% in 2025, driven by regional developments, a recovery in the tourism sector, and a gradual increase in trade with Syria and Iraq. The economy is expected to grow by 3% in 2026-2027.
In this context, Minister of State for Economic Affairs, Muhannad Shihadeh, affirmed that the government is committed to executing major projects that will contribute to boosting economic growth and increasing job opportunities, which will enhance the macroeconomic environment and ensure the sustainability of public finances.
Minister of Planning and International Cooperation, Zeina Toukan, pointed out that Jordan's support from all international partners and the ongoing implementation of structural reforms have strengthened the resilience of Jordan’s economy, stabilizing growth rates despite regional developments. This has also reinforced international institutions' confidence in the national economy.
On the public finance front, the agency predicted that the budget deficit would decrease to 2.3% of GDP in 2025, compared to 2.8% in 2024. S&P also anticipated that the debt-to-GDP ratio would gradually decline in the coming years.
Minister of Finance, Abdul-Hakim Al-Shibli, stated that the decision by S&P to maintain Jordan's credit rating, following an upgrade in September 2024, reflects the high level of confidence international institutions have in the national economy, despite recent developments, whether related to regional security issues or global economic changes.
On another front, Al-Shibli confirmed that the financial and economic reform package implemented by the current government, inspired by the Economic Modernization Vision and the Economic Reform Program, has contributed to boosting economic growth. He also highlighted decisions taken in the final quarter of 2024, including a 50% tax exemption on electric vehicles, waiving additional fees for vehicles whose registration has expired for several years, and exempting individuals involved in customs-related cases before December 31, 2022, from fines of up to 90%. Additionally, there was a 50% exemption on registration fees for residential apartments larger than 150 square meters, along with other measures aimed at improving tax and customs administration. These actions contributed to an increase in local revenues in 2024, reaching 8.771 billion dinars compared to the initial estimate of 8.618 billion dinars.
Regarding monetary policy, the agency noted that the Jordanian dinar's peg to the U.S. dollar has helped stabilize prices and contain inflation. The agency expects inflation to remain at an acceptable level of 2.2% in 2025. The current account deficit is expected to decline to 4.5% of GDP in 2024, the lowest level since 2019.
Central Bank Governor, Adel Sharqas, stated that the decision by Standard & Poor’s to maintain Jordan's long-term sovereign credit rating at BB- with a stable outlook, at a time when the region and the world are experiencing numerous economic and geopolitical changes, underscores the robustness of Jordan’s economic fundamentals and the national economy’s capacity to absorb challenges with flexibility and efficiency.
He added that this decision clearly reflects growing confidence from international financial institutions in the strength of Jordan's economy and the soundness of its economic policies. It sends an important message to markets and investors that the national economy is capable of adapting swiftly and effectively to any regional or international developments.
Sharqas further emphasized that the government's economic reform efforts and Jordan's clear roadmap for economic modernization are key factors in enhancing the resilience of the national economy and increasing the competitiveness of the business environment in the kingdom, which will support economic growth to exceed 3.5% in the medium term.
Sharqas also highlighted that the monetary policy adopted by the Central Bank of Jordan has reinforced monetary stability, supported by record levels of foreign reserves exceeding $21 billion, a decline in dollarization to 18.4%, and a stable inflation rate of around 2%, all of which contribute to confidence in the national economy’s ability to face challenges.
