Amman, Oct. 1 (Petra) — The national economy grew 3 percent in the
second quarter of 2026, accelerating from 2.8 percent a year earlier
as manufacturing, agriculture and other productive sectors drove a
broad-based expansion despite heightened regional disruptions.

The second-quarter rate was the highest recorded in years and came
amid pressures on regional energy flows, trade, tourism, transport
and supply chains. Economists told the Jordan News Agency (Petra)
that the figures point to greater resilience, particularly as Jordan
imports most of its energy and remains exposed to regional economic
disruptions.

They said the strength of the latest performance lies not only in the
headline GDP figure but also in the breadth of growth across the
economy, with 19 of the 20 sectors covered by the national accounts
recording positive expansion.

Manufacturing grew 6.2 percent and made the largest contribution to
overall GDP growth at 1.04 percentage points, while agriculture
expanded 7.8 percent and electricity rose 5 percent.

Banking expert Mohsen Abu Awad said the figures show the economy
maintaining a positive growth trajectory despite elevated
geopolitical risks and uncertainty.

He said stronger manufacturing, agricultural and electricity activity
reflected a tangible improvement in productive sectors, with
manufacturing in particular playing a growing role in generating
added value.

Abu Awad also highlighted the role of the Central Bank of Jordan in
maintaining monetary and financial stability and confidence in the
banking system, providing an environment that supports financing for
economic and investment activity.

Sustaining the momentum will require continued coordination between
fiscal and monetary policies, greater productive investment, higher
productivity and stronger export capacity, he said.

The focus in the next stage, Abu Awad added, should be on translating
GDP expansion into increased private investment, a broader productive
base, higher employment and stronger household incomes.

University of Jordan economics professor Raad Al-Tal said the
second-quarter performance indicates that the economy has maintained
a stable growth path despite regional pressures affecting trade,
tourism, investment and supply chains.

Manufacturing was among the strongest indicators, he said, with the
sector accounting for 17.2 percent of GDP at constant prices.

Al-Tal said growth in agriculture, electricity and water, which
expanded 4.1 percent, also showed that economic momentum was spread
across several productive activities.

Maintaining that performance will depend on further support for
productive sectors, particularly manufacturing, and improving their
ability to invest, expand and access export markets, he added.

Financial and economic expert Mohammad Al-Hadab Al-Sarhan said the
breadth of the expansion was particularly significant because growth
was not dependent on a single sector.

Activity increased across production, services, trade, transport and
financial services, reducing reliance on one economic engine and
strengthening the economy’s ability to withstand external shocks, he
said.

Al-Sarhan said faster growth will require building on sectors already
performing strongly while addressing constraints facing slower
industries through investment, productivity gains, lower energy and
transport costs and access to larger markets.

He said the performance comes amid efforts led by His Majesty King
Abdullah II, follow-up by HRH Crown Prince Hussein bin Abdullah II on
economic and investment priorities, and government implementation of
the Economic Modernisation Vision.

Economic and financial expert Mohammad Abdulqader said the
second-quarter result also forms part of a longer upward trend in
real GDP growth.

The economy expanded 2.5 percent in the second quarter of 2024, 2.8
percent in the same period of 2025 and 3 percent this year,
indicating a gradual improvement rather than a one-quarter surge, he
said.

Abdulqader noted that manufacturing generated about 35 percent of
total second-quarter growth, while agriculture contributed 0.34
percentage points. Trade, transport, financial services, education
and electricity also made positive contributions.

He said the figures were achieved against an unusually difficult
regional backdrop in 2026, with conflict and disruptions to energy
and trade routes, particularly through the Strait of Hormuz, putting
pressure on economies across the region.

The International Monetary Fund lowered its growth forecast for the
Middle East and Central Asia to 0.7 percent this year amid
disruptions to energy production and transportation, while Jordan
recorded 3 percent real GDP growth in the second quarter, Abdulqader
said.

He added that the Kingdom’s second-quarter rate was broadly in line
with the IMF’s projection of around 3 percent for global economic
growth this year.

The next challenge, he said, is to move toward higher and more
sustainable growth by expanding value-added productive sectors and
translating higher output into investment, employment, productivity
gains and stronger real incomes.

//Petra// RZ