The Jordanian economy faces significant challenges, including high public debt exceeding 100% of GDP and unemployment rates above 20%. Additionally, regional pressures, such as the influx of refugees and political crises, contribute to these difficulties. Nevertheless, the Jordanian government has established the 2025 vision aimed at enhancing economic performance and achieving financial stability.
اضافة اعلان
2025 Budget Expectations
The 2025 budget is expected to serve as a critical test for the new government’s economic strategy, aiming to reduce the financial deficit and increase revenues while focusing on vital sectors such as technology and tourism. The government targets a zero deficit by 2025, necessitating comprehensive reforms and precise financial management.
Strategies for Economic Growth
1. Enhancing Investments: Improve the business environment by reducing bureaucratic procedures and offering tax incentives for investors.
2. Infrastructure Development: Invest significantly in transportation and energy projects to enhance trade flow and reduce operational costs.
3.Education and Training: Align educational policies to prepare youth for the labor market, emphasizing skills needed in growing sectors.
4.Tourism Promotion: Improve marketing strategies to attract international tourists and enhance infrastructure and services for visitors.
5.New Sector Development: Focus on innovation and support for startups, while enhancing agricultural production to improve food security.
6.Regional and International Cooperation: Collaborate with neighboring countries to boost trade and investment.
7.Prudent Financial Policies: Strive to reduce the budget deficit and restructure debts for better terms.
Conclusion
The Jordanian economy has promising potential that can be realized through the appropriate application of policies and reforms. By improving the business environment, boosting investments, and developing infrastructure, Jordan can achieve its economic goals by 2025. This requires collaborative efforts from the government, the private sector, and international support for sustainable development, despite the regional challenges.
According to the latest International Monetary Fund (IMF) report, the Jordanian economy has shown resilience in maintaining macroeconomic stability despite the challenges arising from regional conflicts and difficult economic conditions. The IMF’s second review under the “Extended Fund Facility” has enabled Jordan to access approximately $131 million.
Economic growth is projected to reach 2.3% in 2024, with a slight increase to 2.5% in 2025, primarily driven by strong export performance. The report emphasizes the urgency of implementing structural reforms to create more job opportunities and boost economic growth.
The Jordanian government aims to reduce public debt to 80% of GDP by 2028 while maintaining low inflation and financial stability. However, the IMF stresses the importance of continued international support, particularly given the significant financial burdens Jordan faces due to hosting a large number of refugees.
Additionally, pressures on the government arise from rising global food prices, challenges in the agricultural sector, local product support, and enhancing supply chains, as well as improving working conditions—not just creating jobs—to elevate living standards and reduce poverty. Addressing water resource management is critical, as Jordan is one of the most water-scarce countries globally, necessitating increased desalination projects to ensure long-term water resource stability.
The government requires necessary support from the parliament and political parties to implement its economic vision and gain public trust amidst the considerable challenges it faces. It must carry out reforms that balance economic necessities with social justice in the upcoming phase.
May God protect Jordan, the King, and the Crown Prince.
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