Jordan secures IMF staff-level agreement that could unlock U.S.$294 million

Traders Union
All News
Financial Institutions
Jordan IMF $294M agreement

Highlights

Jordan secures IMF staff-level agreement that could release SDR 216.548 million ($294 million) pending board approval, following reviews of EFF and RSF programs.
IMF notes Jordan's real GDP growth at 3% year-on-year for H1 2026, contained inflation, sound banking sector, and narrowed current account deficit due to export strength and subdued non-energy imports.
The draft 2027 budget targets a primary deficit of 0.9% of GDP (excluding grants) and aims to reduce public debt to 80% of GDP by 2028, with ongoing structural reforms supporting private-led growth.

Review outcome and reform program progress

According to the International Monetary Fund, the staff-level agreement covers the sixth review under the Extended Fund Facility and the third review under the Resilience and Sustainability Facility, following talks in Amman from October 21 to November 3, 2026. Board approval would release SDR 216.548 million in total, including SDR 97.784 million under the EFF and SDR 118.764 million under the RSF.

The IMF says program performance remains strong despite spillovers from the war in the Middle East. All quantitative performance criteria and most structural benchmarks for the sixth review are met, while all three reform measures due for the third RSF review remain on track for completion.

IMF mission chief César Serra says Jordan’s economy continues to show resilience, supported by prudent macroeconomic policies, mitigation measures and international backing. He says weaker tourism, higher trade and transport costs, softer foreign direct investment and volatile energy prices are largely offset by manufacturing activity, logistics services linked to the Port of Aqaba, a favorable agricultural season, and stronger remittance and regional tourism inflows.

Economic outlook and regional significance

Real GDP growth reaches 3% year on year in the first half of 2026, while inflation remains contained, according to the IMF statement. The current account deficit narrows as exports strengthen and non-energy imports stay subdued, while the Central Bank of Jordan continues to build reserves and maintain coverage above program targets.

The IMF says the banking sector remains sound, with ample liquidity and strong capital buffers, and notes declining dollarization as a sign of confidence in the Jordanian dinar and its peg to the U.S. dollar. Still, the near-term outlook remains tied to the duration and intensity of the regional war and the persistence of its spillover effects.

On public finances, the authorities meet the central government primary deficit target for end-June 2026, with expenditure management offsetting revenue weakness in the first half. The draft 2027 budget targets a primary deficit, excluding grants, of 0.9% of GDP and supports the goal of reducing public debt to around 80% of GDP by 2028.

The reform agenda also includes unified sectoral licensing rules, infrastructure projects such as the Aqaba-Amman Water Desalination and Conveyance Project and the Aqaba-Shidiya-Maan Railway, and RSF measures covering state-owned infrastructure asset records and public health emergency financing. The IMF says these steps are intended to strengthen private sector-led growth and improve Jordan’s resilience to climate and health shocks.

In our earlier report on the IMF’s outlook for the Middle East and Central Asia amid the war, we highlighted warnings that renewed disruptions to energy production, shipping routes, and trade flows could deepen volatility and strain already-limited regional buffers. We also noted the IMF’s view that the shock is uneven—putting the most pressure on directly affected economies—while urging policymakers to focus on price stability and rebuilding fiscal resilience ahead of further shocks.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.