Jordan’s economy has shown remarkable resilience and growth despite the regional challenges that have affected many neighboring countries. Since the beginning of 2025, economists have highlighted positive indicators that reflect the country’s stable economic environment. This stability and growth can be attributed to several factors, including Jordan’s advantageous geographical location, prudent monetary policy, strong economic relations with major global markets, and a well-qualified, youthful workforce. These factors have collectively contributed to a robust and dynamic economic landscape, positioning Jordan uniquely in a region often marked by economic volatility.
Foreign reserves held by the Central Bank of Jordan (CBJ) have exceeded $21 billion, showcasing the strength and reliability of the country’s monetary system. The dollarization rate, which refers to the use of foreign currency within the economy, has dropped to 18.4% by the end of the previous year, indicating a renewed confidence in the Jordanian dinar. The inflation rate saw a decrease to 1.6%, with expectations to stabilize at around 2% this year. Additionally, the real estate market experienced a significant 9% increase in trading volume in January compared to the same period last year, with the total trading volume reaching approximately JD545 million.
Economic Growth and Stability
Jordan’s GDP has witnessed substantial growth over the years, increasing fivefold from 1999 to 2023, and reaching nearly JD36 billion at current prices. This remarkable growth in the GDP is a testament to the country’s ability to expand its economic base and enhance its production capabilities. GDP per capita also saw a significant rise, climbing from JD1,235 in 2000 to JD3,133 in 2023. This rise in per capita income reflects improved living standards for the Jordanian population, contributing to social stability and economic progress. Another notable achievement is the foreign currency balance, which reached a record $21 billion, up from $4.7 billion in 2000, highlighting the nation’s robust fiscal policies.
Key economic figures within the country have pointed out various strengths underlying the nation’s economy. Ezzeddin Kanakrieh, CEO of the Social Security Investment Fund, noted a growth in comprehensive income to nearly JD1 billion and an increase in the fund’s assets to JD16 billion by the end of 2024. This growth underscores the effective management of social security funds and their role in supporting economic development. Former finance minister Mohammad Abu Hamour emphasized Jordan’s low inflation rates, crediting the Central Bank of Jordan’s prudent measures for maintaining price stability and the stability of the dinar’s exchange rate.
Strategic Policies and Fiscal Management
The political stability and high credit rating of Jordan have played crucial roles in supporting economic stability, as highlighted by Eyad Abu Haltam, President of the Society of East Amman Industrial Investors. He credited the prudent monetary policies since the 1990s for this enduring stability. While the broader region faces numerous economic challenges, Jordan has managed to navigate these complexities through targeted and well-conceived strategies. Ahmad Majali, Associate Professor of Economics at Mutah University, emphasized the government’s economic policies aimed at controlling the fiscal deficit and rationalizing public spending, ensuring efficient use of resources.
Economist Hussam Ayesh described Jordan’s financial and monetary stability as an “exceptional case” within the region, especially for a small economy. The careful design and implementation of monetary policies have made Jordan stand out among its regional peers. This stability is particularly significant given the various economic pressures exerted on smaller economies in the Middle East, thus reflecting the resilience and adaptability of Jordanian economic strategies. Despite external pressures and internal challenges, there is a consensus among experts that Jordan is on a stable footing with positive growth indicators.
Forward-Looking Insights
Jordan’s economy has displayed impressive resilience and growth despite facing regional challenges that have impacted its neighbors. Since early 2025, economists have noticed positive indicators signaling a stable economic environment. Contributing factors to this stability include Jordan’s strategic geographical location, sound monetary policies, robust economic ties with major global markets, and a youthful, highly skilled workforce. These elements together have fostered a strong and dynamic economy, setting Jordan apart in a region often characterized by economic instability.
The Central Bank of Jordan’s (CBJ) foreign reserves have surpassed $21 billion, underscoring the strength and reliability of the nation’s monetary system. The dollarization rate, or the prevalence of foreign currency use within the economy, fell to 18.4% by the end of the previous year, showing renewed confidence in the Jordanian dinar. Additionally, inflation dropped to 1.6%, with expectations of stabilizing around 2% this year. The real estate market also surged, with a 9% increase in trading volume in January compared to the same period last year, reaching about JD545 million.
