Jordan secures $200m from IMF to support economic reform

Jordan has secured around $200 million from the International Monetary Fund to support planned reforms as the country navigates the economic impact of the Iran war.

The completion of an extended fund facility (EFF) review will release $140 million from the approved $1.2 billion programme, the IMF said in a statement.

Additionally, the completion of a resilience and sustainability facility review will provide access to $57 million from the approved $744 million.

Jordan’s economy entered the regional conflict with strong momentum and continues to demonstrate resilience, the IMF said.

However, the impact of the war is weighing on the near-term outlook, including through energy markets and tourism.

The Jordanian government has acted swiftly with carefully calibrated measures to cushion the immediate effects, safeguarding energy security, facilitating supply chains, ensuring adequate liquidity in financial markets, and providing targeted support to those most exposed to disruptions.

The IMF now estimates economic growth will slow to 2.7 percent in 2026, down from the 3 percent expected before the war. Inflation is forecast to rise modestly to 2.3 percent, driven by higher food and fuel prices. 

The current-account deficit is projected to widen to 6.9 percent of GDP, reflecting weaker tourism receipts and increased freight, insurance and energy import costs.

“Should the war be more protracted, the economic impact would inevitably be larger,” the IMF said. 

Jordan launched a stimulus package worth JD760 million ($1 billion) earlier this month to inject fresh liquidity into banks and support tourism.

The package follows an emergency plan to manage gas shortages, including rationalising supplies to the industrial sector.

The plan also includes accelerating a project to develop Jordan’s sole gas field in its eastern desert in a bid to become self-sufficient in 2029.

Further reading:

• Jordan seeks Algerian LNG after Israeli gas supply shock
• Final decision on Jordan’s $1bn green ammonia project next year
• Jordan seeks PPP investors for first elevated motorway