ESCWA Projects 2.8% Jordan Growth, Lower Inflation

(MENAFN- Jordan Times) AMMAN - Jordan is projected to achieve economic growth of 2.8 per cent this year, with the same rate expected in 2027, according to a report issued by the United Nations Economic and Social Commission for Western Asia (ESCWA).

The report also forecasts a decline in inflation in the Kingdom, from 2.4 per cent this year to 1.8 per cent in 2027, the Jordan News Agency, Petra, reported.

ESCWA expects Jordanian exports to maintain an upward trajectory, rising from 3.8 per cent last year to 4.8 per cent this year and 6.5 per cent in 2027. The projected performance places Jordan ahead of several middle-income countries, including Tunisia, Egypt, Algeria, Iraq and Palestine, based on the commission's classification.

Published under the title Macroeconomic Outlook for the Arab Region, the report says the Arab region is witnessing a gradual economic recovery despite mounting challenges, with regional growth projected to increase from 2.9 per cent in 2025 to 3.7 per cent this year.

ESCWA noted that economic trends continue to be shaped by heightened global uncertainty, driven by geopolitical tensions and tightening financial conditions, factors that may weigh on efforts to achieve sustainable and inclusive growth.

Regional inflation is expected to ease from 8.2 per cent last year to 5.4 per cent by 2027, supported by declining commodity prices and the normalisation of supply chains, while overall exports across the Arab region are also forecast to expand, aided by stronger non-oil trade, according to the report.

High-income Arab economies are projected to record GDP growth of 4.2 per cent in 2026, up from 3.3 per cent last year, reflecting the impact of economic diversification efforts.

Growth in middle-income Arab countries is expected to rise from 2.8 per cent last year to 3.3 per cent this year, with gradual improvement anticipated despite continued debt and inflation pressures.

ESCWA added that low-income countries are facing persistent fiscal and humanitarian strains, with only limited recovery projected following a contraction of 0.9 per cent in 2025.

Highlighting the humanitarian crisis in Gaza, the report estimated reconstruction costs at nearly $70 billion amid widespread destruction affecting approximately 78 per cent of buildings.

ESCWA calls on Arab states to continue economic diversification, reduce reliance on hydrocarbons, strengthen investment in human capital and technology, enhance public financial management, and align aid and investment flows with national priorities, particularly in conflict-affected countries.

ESCWA is one of five regional commissions of the United Nations, working to support inclusive and sustainable development across the Arab region while promoting regional integration.

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