Jordan's Economy Maintains Growth Momentum Despite Regional Challenges - JSF

(MENAFN- Jordan Times) AMMAN - The Jordan Strategy Forum (JSF) has issued a report titled“Jordan's Economy: Encouraging Performance Amid Ongoing Uncertainty” as part of its“Knowledge is Power” series, highlighting the economy's resilience amid regional challenges.

The report reviews key economic indicators for 2026, comparing them with previous years.

The JSF noted that regional instability has compounded domestic economic challenges, citing the World Bank's assessment that regional conflicts are testing Jordan's ability to maintain stability, sustain economic activity and adapt to changing conditions.

Economic growth rose from 2.5 per cent in the second quarter of 2024 to 2.8 per cent in the same quarter of 2025 and 3 per cent in the second quarter of 2026. The forum said this trend could bring annual growth close to 3 per cent in 2026, provided economic activity maintains its momentum.

Inflation stood at around 2.2 per cent during the first eight months of 2026, helping ease pressure on purchasing power and business costs.

Manufacturing grew by 6.2 per cent, contributing around 33 per cent of total economic growth, while agriculture expanded by 7.8 per cent, accounting for approximately 11.3 per cent.

The trade deficit narrowed by 6 per cent during the first seven months of 2026, while the export-to-import coverage ratio improved from 51 per cent to 55 per cent. Exports rose by 10.3 per cent to JD6.40 billion, compared with 2.4 per cent growth in imports.

Net job creation reached approximately 96,200 in 2025, with Jordanians accounting for 91 per cent. Unemployment among Jordanians fell to 21 per cent in the second quarter of 2026, down from 21.3 per cent a year earlier. The number of active social security contributors rose by 4.3 per cent to 1.69 million by the end of September.

Tourism also improved, with Jordan receiving 4.97 million visitors in the first eight months of 2026, up by 2.9 per cent year-on-year. Tourism receipts reached JD3.94 billion in the first half of the year, compared with JD3.83 billion in the same period of 2025.

Remittances from Jordanians working abroad rose by 14.1 per cent to JD2.1 billion during the first seven months of 2026, supporting household income, domestic demand and foreign currency inflows.

Licensed building areas increased by 4.7 per cent to 5.84 million square metres between January and July, with residential areas rising by 10.7 per cent. The forum cautioned that building permits do not necessarily translate into actual construction activity.

Financing for micro, small and medium-sized enterprises (MSMEs) reached approximately JD3.56 billion by the end of the first half of 2026.

New company registrations rose by 7.24 per cent to 6,046 during the first nine months of 2026, while dissolved or deregistered companies fell by 15 per cent.

Investment in development zones rose by 18.8 per cent to JD6.9 billion in the first half of 2026, while employment increased from 117,000 to approximately 123,000. Foreign direct investment stock reached JD28.4 billion by the end of the second quarter, up from JD26.4 billion a year earlier.

Listed companies recorded combined profits of JD1.20 billion in the first half of 2026, an increase of 14.3 per cent year-on-year and the second-highest first-half total on record.

The forum also highlighted the Amman Stock Exchange's performance in 2025, when its general index rose by 45.1 per cent, earning it an award as the best-performing Arab stock exchange based on weighted index growth.

The JSF Investor Confidence Index rose by 21.9 per cent in the second quarter of 2026 compared with the previous quarter. The economic activity confidence sub-index increased by 74.3 per cent, reaching its highest quarterly level in three years.

Citing the International Monetary Fund's June 2026 assessment, the report said Jordan had maintained macroeconomic stability despite regional conflict, supported by foreign currency reserves, a sound banking sector and progress in implementing economic reforms.

The JSF said sustaining this progress would require greater domestic and foreign investment, stronger private-sector partnerships, higher productivity, quality job creation and improved living standards.

The forum also highlighted the Jordan-EU Investment Conference, scheduled for November 19, 2026, at the Dead Sea, as an opportunity to connect Jordanian projects with European financing, technology and expertise.

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