Amman, July 28 (Petra) -- Central Bank of Jordan (CBJ) Governor Adel Sharkas said Jordan’s economy continues to grow steadily despite regional instability, supported by a clear economic modernization vision.

Speaking at a forum organized by the Jordan Strategy Forum titled "Reform, Stability, Resilience," Sharkas stated that the economy recorded 2.7% growth in both Q4 2024 and Q1 2025, driven by diverse sectors. CBJ expects 2025 growth to remain at 2.7%, rising above 4% by 2028 with the implementation of major infrastructure projects and continued fiscal reforms.

He emphasized Jordan’s strong fundamentals: a solid monetary framework, stable investment climate, healthy banking sector, and credible exchange rate regime. These factors have boosted investor confidence, reflected in the strong performance of Jordan’s Eurobonds, which are trading below issuance yields.

Between 2021–2024, the economy grew at an average of 2.9% the highest since 2010 driven by gains in productivity, human capital, and non-traditional exports, which now contribute 20.9% to GDP, up from 16.2% in 2016, he added.

Sharkas noted that investment contributed 40% to growth during this period, while external demand contributed 38%. He attributed this momentum to structural reforms, with around 100 reforms since 2012, enhancing governance, competitiveness, and job creation.

On the external front, Jordan's energy bill dropped to 7% of GDP in 2024 down from 21% in 2012, thanks to energy diversification and long-term gas deals. Tourism revenue reached $3.7 billion in H1 2025 and is projected to hit $7.7 billion by year-end. FDI reached $1.6 billion in 2024, while remittances are expected to rise to $3.7 billion.

Inflation was contained at 2% in H1 2025. Foreign reserves hit $22 billion, enough to cover 8.4 months of imports. Bank deposits reached JD 47.7 billion in May, while dollarization declined to 18.1%. Financial inclusion rose to 43.1% in 2022, with gender gap narrowing from 53% to 22%.

Digital payment activity surged to 538 million transactions worth JD 55.3 billion in 2024. Credit facilities rose by over JD 7 billion since 2020, reaching JD 35.3 billion by May.

CBJ completed 90 of 94 initiatives under the 2023–2025 economic vision. The remaining are on track. Public finance reforms are also advancing, with the primary deficit expected to drop to 2% of GDP in 2025, aiming for a surplus by 2027. Public debt is projected to fall below 80% of GDP by 2028.

Chair of the forum Faris Sharaf stressed the need to balance monetary stability with flexible economic policies. Executive Director Nasreen Barakat highlighted the forum’s role in fostering evidence-based policy dialogue, and board member Nadia Saeed emphasized CBJ’s regulatory role in supporting sustainable development.

The dialogue also addressed virtual asset regulations, SME support, economic literacy, and Jordan’s resilience to external shocks.

//Petra// AO

28/07/2025 16:37:16