Jordan’s economy is entering a period of cautious recovery while navigating significant regional and global pressures. In 2026, the country continues to focus on economic stability, investment, exports, infrastructure, tourism, energy security, and private-sector growth.
Recent assessments from the International Monetary Fund (IMF) indicate that Jordan has maintained macroeconomic stability despite the effects of regional conflict. However, weaker tourism, higher energy costs and increased shipping expenses remain important challenges.
What is the current state of Jordan’s economy?
Jordan’s economy remains relatively stable, but growth is being affected by regional uncertainty. The IMF expects real GDP growth of about 2.7% in 2026, followed by stronger growth of approximately 3.1% in 2027, assuming regional disruptions gradually normalize.
The outlook is supported by infrastructure investment, improving exports, economic reforms and continued international financial support.
Is Jordan’s economy growing in 2026?
Yes, although growth remains moderate.
Jordan recorded 3% year-on-year growth in the fourth quarter of 2025, showing that economic momentum had strengthened before regional disruptions affected activity. The IMF expects growth to recover during the second half of 2026 and accelerate further in 2027.
Large infrastructure projects are expected to become an important source of future economic activity.
What are the biggest challenges facing Jordan’s economy?
The main challenges include regional geopolitical tensions, higher energy costs, weaker tourism, increased freight and insurance expenses, and pressure on the external balance.
The IMF estimates that Jordan’s current-account deficit could widen to 7.4% of GDP in 2026, partly because of a higher energy import bill, weaker tourism receipts and rising shipping costs.
These pressures make energy security, export growth and economic diversification particularly important.
How is inflation affecting Jordan?
Inflation remains relatively contained compared with many other economies.
The IMF projects average inflation of approximately 2.5% in 2026, compared with an average of 1.4% during the first quarter of the year. Higher food and fuel prices are expected to contribute to the increase. Inflation is then expected to move closer to around 2% over the medium term.
Stable inflation is important because it supports household purchasing power and gives businesses greater predictability when planning investment.
What is happening with tourism in Jordan?
Tourism remains an important part of Jordan’s economy, but regional conflict has created significant uncertainty for the sector.
The IMF expects tourism receipts to decline by around 3.4% in 2026, compared with earlier expectations for growth. This reflects the impact of regional instability on international travel and visitor demand.
Jordan’s tourism industry remains strategically important because it generates foreign currency, supports employment and contributes to hotels, restaurants, transportation and other service businesses.
Are Jordan’s exports performing well?
Exports have been one of the more positive areas of Jordan’s economy.
Jordan’s goods exports increased by 10.1% in 2025, supported by stronger demand from neighboring countries, Gulf markets and European markets. Important export categories include fertilizers, food products and pharmaceuticals.
In 2026, favorable external demand and higher export prices could continue supporting manufacturing, mining and agricultural activity.
What role does the Port of Aqaba play in Jordan’s economy?
The Port of Aqaba is becoming increasingly important for Jordan’s trade and logistics outlook.
The IMF expects transportation and logistics activity through Aqaba to benefit from increased regional demand, particularly as disruptions to other regional trade routes affect supply chains.
A stronger logistics sector could help Jordan develop its position as a regional transportation and distribution hub.
What major infrastructure projects could boost Jordan’s economy?
Infrastructure investment is expected to be one of the major drivers of future growth.
The IMF specifically points to the Aqaba-Amman Conveyance project and the Jordan-UAE Aqaba Port Railway project as major projects expected to support economic activity.
These investments could create construction activity, improve infrastructure capacity and generate opportunities for businesses connected to transportation, logistics, engineering and related services.
Is Jordan attracting foreign investment?
Jordan continues to pursue foreign direct investment as part of its strategy for private-sector-led economic growth.
The country’s reform agenda focuses on improving the business environment, strengthening competitiveness and reducing labor-market rigidities. The IMF has emphasized private-sector job creation as an important objective of Jordan’s economic program.
Foreign investment will remain important for expanding productive capacity and creating employment opportunities.
What is Jordan doing to strengthen its financial stability?
Jordan has maintained strong external buffers and relatively stable domestic financial markets despite regional pressures.
According to the IMF, gross usable international reserves reached approximately $25.4 billion at the end of 2025, compared with $20.3 billion in 2024.
The country is also continuing fiscal and structural reforms designed to improve public finances, financial-market development and long-term economic resilience.
What is the IMF’s role in Jordan’s economy?
The IMF remains an important partner in Jordan’s economic reform program.
In June 2026, the IMF Executive Board completed Jordan’s fifth review under its Extended Fund Facility and second review under its Resilience and Sustainability Facility. This made approximately $134 million available under the EFF and $54 million under the RSF.
The programs support fiscal stability, debt reduction, economic resilience and private-sector job creation.
What reforms is Jordan pursuing?
Jordan is working on reforms covering public finances, social security, energy, customs, financial markets and the broader business environment.
The IMF’s 2026 review includes measures related to financial-market development, electricity-sector financial sustainability, pension reform and customs exemptions. A new customs-duty framework is expected to begin implementation with the 2027 budget.
These reforms are intended to make the economy more competitive and financially sustainable.
What is happening in Jordan’s energy sector?
Energy security remains a major economic priority.
Higher energy import costs are expected to put pressure on Jordan’s external accounts in 2026. At the same time, the country is working to improve the management of renewable energy within its electricity system.
Planned measures include an Automated Energy Control Center designed to improve the monitoring and management of renewable energy connected to the national grid.
What does the outlook for Jordan’s economy look like?
Jordan’s economic outlook is cautiously positive, although risks remain high.
In the short term, tourism weakness, higher energy prices, shipping costs and regional instability could limit growth. However, stronger exports, infrastructure investment, logistics activity and economic reforms provide potential sources of expansion.
The IMF expects growth to improve from approximately 2.7% in 2026 to 3.1% in 2027, assuming regional disruptions gradually ease.
What are the biggest business opportunities in Jordan?
Several sectors could offer opportunities as Jordan’s economy develops:
- Infrastructure and construction: Major national projects can generate demand for engineering, construction and related services.
- Logistics: Aqaba’s strategic position creates opportunities in transportation and regional trade.
- Manufacturing: Fertilizers, pharmaceuticals and food products remain important export industries.
- Renewable energy: Energy-sector reforms and renewable integration can create opportunities for technology and infrastructure companies.
- Tourism: Jordan’s established cultural and historical attractions continue to provide long-term potential once regional conditions improve.
- Technology and services: Business-environment reforms and private-sector development can support new companies and digitally focused businesses.
What should businesses watch in Jordan during 2026?
Businesses should closely monitor regional security conditions, energy prices, tourism trends, export demand, infrastructure spending and government reforms.
Jordan’s relatively strong financial buffers provide an important source of stability, but the economy remains exposed to external shocks. The ability to maintain macroeconomic stability while expanding private-sector investment will be central to the country’s economic performance.
Conclusion: What is the future of Jordan’s economy?
Jordan’s economy is navigating a challenging 2026, but its fundamentals remain comparatively resilient. Moderate economic growth, controlled inflation, strong international reserves, improving exports and major infrastructure projects provide reasons for cautious optimism.
The immediate challenge is managing the effects of regional instability, particularly on tourism, energy costs and trade. At the same time, Jordan is positioning itself for longer-term growth through infrastructure investment, economic reforms, renewable energy development and stronger private-sector participation.
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