Jordan's growth expected moderating to 2.4% in 2024, from 2.6% in 2023

Jordan's economic growth is expected moderating to 2.4% this year, after expanding 2.6% last year, the International Monetary Fund (IMF) said Monday.

Economic growth is expected to pick up pace in 2025, "contingent upon the conflict ending and its impact fading," while inflation is low, in addition to strong reserves and their buffers, it said.

"Jordan’s economy continues to show resilience, including in the face of the challenges posed by the Israel-Gaza conflict and the disruptions to trade in the Red Sea," the IMF said in a statement after its Executive Board completed the first review under the Extended Fund Facility (EFF) with the Middle Eastern country.

The EFF provides the country access of approximately $130 million.

The financial agency listed some of the challenges Jordan faces as high unemployment, the unsettled regional situation that weighs on the country's near-term outlook, and the need for international support to help shoulder the cost of hosting large number of Syrian refugees.

Jordan's fiscal policy continues to reduce public debt through a gradual fiscal consolidation, while monetary policy is focused on maintaining monetary and financial stability, the global lender said.

"The adverse impact of the conflict on growth and investment underscores the need to continue with, and to accelerate, structural reforms, to improve the viability of public utilities and to create a more dynamic private sector that can create more jobs and achieve the goals of the authorities’ Economic Modernization Vision," the statement said.