Amman, Jan. 21 (Petra) -- Jordan has emerged as the world’s top performer in price stability, according to a comprehensive analytical report issued by the Jordan Economic Forum on the Kingdom’s standing in the 2025 Global Competitiveness Index released by the International Institute for Management Development (IMD).

The report attributes Jordan’s first-place global ranking in price stability to the effectiveness of its monetary policy framework and the credibility of its fixed exchange rate regime, which together have reduced macroeconomic uncertainty and compressed risk premiums. This performance contrasts with several advanced economies that faced elevated inflation and fiscal pressures during the same period.

Beyond price stability, Jordan registered notable gains across a range of competitiveness indicators. The Kingdom improved its overall global competitiveness ranking to 47th in 2025, up from 48th a year earlier, while its aggregate score rose by 2.28 points to 57.79, marking its strongest performance over the past decade.

Jordan also posted strong results in key qualitative indicators, ranking third globally in women’s representation in managerial positions, seventh in foreign labor participation, and eighth in early-stage entrepreneurial activity. The report noted a significant improvement in the price index ranking, which advanced from 19th to 11th place.

According to the Forum, the IMD Global Competitiveness Index does not assess economic size or income levels, but rather evaluates the efficiency with which economies organize their institutions, policies, markets, and infrastructure to translate available resources into sustainable economic outcomes. The index is based on more than 300 sub-indicators across four core pillars: economic performance, government efficiency, business efficiency, and infrastructure.

Business efficiency stood out as Jordan’s strongest pillar, with the Kingdom ranking 33rd globally in 2025, reflecting improved corporate management practices and a sharp advance in labor market readiness. The labor market sub-index climbed from 29th to 21st, driven by stronger skills availability, workforce training, and cost competitiveness.

In government efficiency, Jordan ranked 39th out of 69 countries, recording top-tier performance in several areas, including first place globally for low dismissal costs and fifth for bureaucratic efficiency, alongside improvements in public finance management and income tax collection.

Infrastructure indicators also improved, with Jordan rising to 52nd globally, supported by gains in technological infrastructure, strong investment in the telecommunications sector, and a high ranking in the number of science graduates.

The Forum noted that Jordan’s competitiveness position places it close to economies such as Italy and ahead of several European countries, as well as Turkey and India. Foreign direct investment inflows reached approximately 3.1% of GDP in 2024, signaling sustained investor confidence despite regional and global volatility.

The report concluded that while Jordan’s competitiveness gains are substantial, the next phase of reform should pivot from stability-led progress toward productivity-driven growth. Priority areas include expanding private sector employment, enhancing skills alignment, accelerating innovation, diversifying exports, and elevating investment promotion as a central pillar of economic policy.

//Petra// RZ

21/01/2026 12:00:53