Recent years have proven that the national economy possesses many key drivers that have enabled it to withstand regional storms and global economic fluctuations. These drivers lie in the diversification of the productive base, prudent management of fiscal and monetary policies, and the ability to handle crises without disrupting economic activity.
Economists speaking to the Jordan Gazette Agency (PETRA) emphasized that the national economy’s ability to maintain growth and stability despite regional unrest and shocks is no coincidence. Instead, it is the result of a accumulation of balanced economic, monetary, and fiscal policies, alongside continuous institutional reforms.
They explained that the diversification of income sources forms a primary pillar of strength for the national economy. The Kingdom relies on a wide pool of economic resources, including national exports, remittances from Jordanian expatriates, tourism revenues, services, and human resources, among others.
They stressed that the upcoming phase requires transitioning from a stage of resilience to a stage of higher, more job-creating growth. This can be achieved by raising and increasing productivity, promoting and stimulating local and foreign investment, expanding the export base, and executing the projects of the Economic Modernization Vision.
The Chairman of the East Amman Industrial Investors Association, Dr. Iyad Abu Haltam, confirmed that over the past years, the national economy has proven its resilience and capability to face shocks. He noted that economic performance maintained its stability despite a succession of global and regional crises witnessed by the world and the region.
He said that reviewing the historical performance of the national economy in recent years clearly demonstrates its ability to maintain positive growth rates. These rates did not decline sharply despite exceptional circumstances, including the COVID-19 pandemic, the global supply chain crisis, the Russian-Ukrainian war, the aggression on Gaza, along with recent global economic turbulence, geopolitical tensions, and closures of the Strait of Hormuz.
He explained that the stability Jordan enjoys is one of the most vital factors supporting the national economy. He pointed out that the Kingdom possesses an influential political presence and broad international respect for the Hashemite leadership, which reflects directly on the national economy and boosts international community confidence in the country.
He noted that this political presence has helped strengthen the international support provided to Jordan by global institutions and friendly nations, whether through International Monetary Fund (IMF) and World Bank programs or via grants, aid, and support programs.
He stated that the prudent economic policies adopted by the Kingdom over past decades formed an essential foundation for reinforcing economic stability, spearheaded by the fixed exchange rate of the Jordanian Dinar, alongside the implemented economic reform programs.
He stressed that these policies helped anchor a successful monetary policy led by the Central Bank of Jordan (CBJ). This has aided in attracting and retaining investments, enhancing the attractiveness of the business environment, protecting the economy from various fluctuations and crises for over three decades, and boosting local and foreign investor confidence in the national economy.
He noted that the Central Bank’s foreign currency reserves have exceeded $27 billion—an unprecedented, historic milestone that reflects the strength of the Kingdom’s financial position. It also bolsters Jordan’s capacity to secure its essential commodity needs for extended periods, as the Kingdom maintains a safe stockpile of certain goods sufficient for more than ten months, exceeding recognized global standards.
He indicated that fiscal policies relating to controlling public spending, managing public debt, and working to lower the budget deficit have also contributed to financial stability. He explained that despite some ongoing challenges concerning the trade balance and balance of payments deficits, indicators show gradual improvement in limiting these imbalances.
He pointed out that the continuous growth in Jordanian exports has helped reduce the trade deficit, raising the export-to-import coverage ratio to between 53% and 55%. This reflects the improved competitiveness of the national economy and the increased presence of Jordanian products in foreign markets.
He explained that the diversification of income sources is a core strength of the Jordanian economy. The Kingdom relies on a broad range of economic resources, including national exports, remittances from Jordanians working abroad, and the tourism sector, which contributes more than 10% of the Gross Domestic Product (GDP).
He noted that the tourism sector holds massive potential for growth as soon as regional tensions subside, alongside the services, information technology, and renewable energy sectors, which have become vital contributors to the national economy.
He pointed out that Jordanian products now reach over 150 countries worldwide, backed by a diverse industrial base that includes pharmaceutical, fertilizer, chemical, food, engineering, and plastic industries. These sectors help boost economic diversity and increase value-added benefits for the national economy.
He emphasized that Jordanian human resources represent one of the most vital elements of strength in the Kingdom. Jordan enjoys high education levels and a broad base of competencies and expertise, and ranks among the nations with a high ratio of engineers relative to the population. This reflects the Kingdom’s possession of qualified human capital capable of driving productivity, innovation, and economic growth.
Abu Haltam stressed that these factors have enhanced the national economy’s capability to confront shocks and disturbances, expressing hope that the Kingdom will succeed in the coming years in surpassing the 5% growth barrier in line with the targets of the Economic Modernization Vision.
For his part, the Director General of the Association of Banks in Jordan, Dr. Maher Al-Mahrouq, said that the presence of a strong banking sector has always formed one of the most vital pillars of economic and financial stability in the Kingdom. He explained that despite the challenges facing the region, the ramifications of the pandemic, supply chain disruptions, and high global inflation rates, the national economy did not witness any major financial or monetary imbalances. It continued to achieve positive growth rates while maintaining price stability and the Dinar’s exchange rate.
He attributed this to several supporting factors, including the wise monetary policy pursued by the Central Bank. This policy succeeded in preserving monetary stability, boosting confidence in the Dinar, and maintaining comfortable levels of foreign reserves, which provided a robust shield for the economy against external fluctuations and solidified confidence among investors and international institutions.
He stated that the banking sector has proven to be the first line of defense for economic stability, noting that the capital adequacy ratio of licensed banks reached 17.8% at the end of last year, well above the minimum regulatory requirement.
He pointed to the stability of the non-performing loans ratio at 5.5%, alongside the continued high levels of provisions and liquidity. This reflects the solidity of the banking system and its ability to continue financing various economic sectors even under the most difficult conditions, without affecting its financial soundness.
He explained that the economic reforms implemented by the government within the Economic Modernization Vision, and under cooperation programs with the IMF, have boosted confidence in the national economy. He noted that the Fund, in its recent review, indicated that Jordan continues to successfully execute its reform program, and that the primary deficit in 2025 turned out better than targeted, while work continues on reducing public debt to reach around 80% of GDP by 2028.
He stated that the national economy has become more capable of adapting to variables by diversifying growth sources, expanding the digital economy, improving the business environment, and strengthening partnerships with the private sector, in addition to investing in value-added sectors like IT, services, renewable energy, and export-led industries.
Al-Mahrouq emphasized that maintaining the positive performance of the national economy requires continuing reforms, stimulating investment, increasing productivity, and accelerating the implementation of the Economic Modernization Vision projects. He noted that the upcoming phase demands a transition toward achieving higher and more inclusive growth rates to provide job opportunities, raise living standards, and boost the competitiveness of the Kingdom’s economy.
On his part, economic affairs specialist Dr. Ahmad Al-Majali confirmed that the national economy has not treated external shocks merely as passing events; rather, it has developed over time an institutional and economic capacity to adapt to them and absorb their impacts.
He stated that despite its small size and vulnerability to fluctuations in energy prices, trade movements, shipping costs, tourism, and overall regional geopolitical developments, the national economy has continued to resist, grow, and overcome challenges.
He explained that growth is no longer tied to a single sector but has become more broad-based across various economic activities, most of which grew in the first quarter of this year, reflecting that the economy is moving on a broader foundation.
“The sectors of agriculture, manufacturing, mining, and electricity have emerged as vital drivers of this growth, which bolsters the economy’s resilience when one sector faces pressure or a slowdown,” he said.
He added that the productive sectors, particularly industry and agriculture, play a pivotal role in explaining this performance. Industry is not just a sector that produces goods; it is a sector linked to exports, employment, value chains, and creating demand for other sectors.
He continued: “Agriculture, for its part, has shown a clear capacity to contribute to growth, giving an indication of the importance of real sectors in supporting the economy, instead of relying solely on service or consumer sectors.”
He further noted: “The role of proactive economic policies in mitigating the impact of shocks cannot be overlooked. Government measures have supported economic activity, improved the business environment, enhanced liquidity within the private sector, and maintained the continuity of supply chains.”
He emphasized that a cautious monetary policy, the maintenance of comfortable levels of foreign reserves, and relative control over inflation are all factors that have helped boost confidence in the national economy.
He explained that praise from international institutions for the national economy is not linked to the growth figure alone, but to the economy’s ability to achieve positive and gradual growth within a complex regional environment, as they look at stability, adaptability, and the continuity of reform, rather than just the numerical indicator in a specific year.
He concluded that the secret to the national economy’s resilience lies in a mix of a diversified productive base, proper management of fiscal and monetary policies, and an institutional capacity to handle crises without disrupting economic activity. He emphasized that Jordan was not removed from shocks, but it managed to absorb a significant portion of their effects and maintain a relatively upward growth trajectory.
Al-Majali stressed that the next phase requires moving from resilience to higher, job-generating growth by raising productivity, boosting investment, expanding the export base, and accelerating the implementation of projects linked to the Economic Modernization Vision. – (PETRA – Saif Din Sawalha)
