Economic Update: Jordan’s Credit Rating and Economic Outlook
The credit rating agency Standard & Poor’s has reaffirmed Jordan’s credit rating at “BB-B” with a stable outlook, reflecting the country’s ongoing economic and financial reforms.
In its recent assessment, the agency attributed the stable rating to Jordan’s resilience in navigating regional and global economic challenges, as well as its capacity to secure alternative funding from international entities such as the International Monetary Fund, World Bank, and the European Union.
According to reports, the stable outlook for Jordan’s economy is bolstered by the positive impact of financial and economic reforms, alongside a flexible growth trajectory. Standard & Poor’s projects an economic growth rate of 2.7% for 2025, driven by regional developments, a recovering tourism sector, and a gradual increase in trade with neighboring countries, Syria and Iraq. This growth is anticipated to escalate to 3% in 2026 and 2027.
From a public finance perspective, the agency forecasts a reduction in the budget deficit, projecting it to comprise 2.3% of GDP in 2025, down from 2.8% in 2024. Furthermore, it anticipates a gradual decline in the debt-to-GDP ratio over the forthcoming years.
On matters of monetary policy, the agency highlighted that the fixed exchange rate of the Jordanian dinar to the US dollar has played a crucial role in stabilizing prices and controlling inflation rates. For 2025, inflation is expected to remain at a manageable 2.2%. Additionally, the current account deficit is projected to decrease to 4.5% of GDP in 2024, marking its lowest level since 2019.