Jordan’s Economy Expected to Grow 2.7 Percent in 2025, Driven by Tourism Recovery
Jordan’s economy is poised for growth, with the country’s central bank governor predicting an increase of 2.7 percent in 2025. This forecast aligns with the broader trend in the Middle East, where other countries such as Saudi Arabia and the UAE are also expecting significant economic expansion.
According to Adel Sharkas, the governor of Jordan’s central bank, the country’s GDP growth will be driven by the recovery of the tourism sector. The tourism industry has been a crucial component of Jordan’s economy, with the country aiming to attract international visitors through its archaeological and cultural heritage, as well as unique natural landscapes.
Tourism Industry Plays a Vital Role in Jordan’s Economy
The tourism sector is considered pivotal for economic growth and job creation in Jordan. In recent years, the industry has faced numerous challenges, including the COVID-19 pandemic and subsequent external economic shocks. However, the central bank governor notes that the national economy has demonstrated exceptional resilience against these challenges.
Jordan’s efforts to develop its tourism sector are reflected in the country’s National Tourism Strategy 2021-2025. This strategy aims to attract international visitors through various initiatives, including investments in infrastructure development and marketing campaigns.
Foreign Direct Investments Surge in Jordan
In a related development, Jordan has attracted significant foreign direct investments (FDIs) in recent months. According to Sharkas, the country’s FDI inflows reached $1.3 billion during the first three quarters of 2024. This increase is attributed to the country’s business-friendly environment and its strategic location in the Middle East.
The surge in FDIs is a testament to Jordan’s growing appeal as an investment destination. The country’s economic growth prospects, combined with its favorable business climate, make it an attractive option for investors seeking opportunities in the region.
Banking Sector Commits to Funding Health and Education Projects
In a ceremony held on March 16, Jordan’s banking sector committed $126.92 million to fund health and education projects over the next three years. This commitment is part of the country’s efforts to support economic growth and social development.
According to Jafar Hassan, Jordan’s prime minister, the country’s banking sector has been a fundamental pillar supporting its national economy’s strength, stability, and resilience throughout history. The prime minister noted that the banking sector has achieved advanced global ratings in financial strength and banking system solidity over the past quarter century.
World Bank Assesses Financing of Economic Reforms Projects
In related news, the World Bank is assessing the financing of five projects aimed at supporting economic reforms, social protection, and entrepreneurship in Jordan. The total potential investment for these projects is valued at $900 million.
These projects are part of the country’s efforts to promote economic growth and development. By supporting economic reforms and social protection initiatives, Jordan aims to create a more conducive business environment and improve living standards for its citizens.
Inflation Expected to Stabilize in 2025
According to Sharkas, inflation in Jordan reached 2.2 percent in the first two months of this year. However, the central bank governor expects inflation to stabilize at 2 percent for 2025. This forecast is based on various economic indicators and assumptions about future trends.
The stabilization of inflation is a positive development for Jordan’s economy. A stable inflation rate will help maintain consumer confidence and support economic growth.
Conclusion
Jordan’s economy is expected to grow 2.7 percent in 2025, driven by the recovery of the tourism sector and increasing trade relationships with Syria and Iraq. The country’s central bank governor notes that the national economy has demonstrated exceptional resilience against challenges over the past five years.
The government’s efforts to develop the tourism sector through initiatives such as the National Tourism Strategy 2021-2025 are crucial for economic growth and job creation. Additionally, the surge in foreign direct investments is a testament to Jordan’s growing appeal as an investment destination.
As the country continues to navigate the challenges of the global economy, it is essential to maintain a stable business environment and promote economic reforms. The World Bank’s assessment of financing projects aimed at supporting economic reforms, social protection, and entrepreneurship is a positive development for Jordan’s economy.