Amman, December 29 (Petra) — Jordan is entering a new phase of economic transformation with data indicating that the national economy will continue to show growth in 2025.
This positive outlook is driven by the government’s commitment to addressing economic challenges and implementing its economic modernisation vision, which is expected to promote stability and improve Jordanians’ quality of life.
Experts believe that regional stability, particularly following the cessation of Israeli aggression in Gaza, will create favourable conditions for growth in key economic sectors such as tourism, industry and exports.
A recent report by Ipsos Market Research showed that Jordanians are optimistic about the national economy’s prospects for 2025 with expectations for improved financial conditions and a more favourable investment climate.
According to the report, 51% of respondents believe the national economy will grow in 2025, while 59% are confident that the government will make positive changes to improve economic and living conditions.
Economic experts told the Jordan News Agency (Petra) that the resolution of regional instability, especially the end of Israeli aggression in Gaza, will provide a solid foundation for economic recovery, particularly in tourism.
Maher Mahrouq, Director General of the Association of Banks in Jordan, noted that reports from international financial institutions support positive expectations for economic growth in 2025. He predicted a noticeable improvement in the national economy, with growth expected to rise to 2.9% in 2025, up from 2.4% in 2024.
He emphasised that inflation rates are expected to remain low at around 2.4%, among the lowest in the region, lauding the Central Bank of Jordan’s monetary policies that balance stimulating economic growth with maintaining price stability.
He highlighted that the improvement in the national economy’s outlook is driven by several factors, including supportive monetary policies, trends in global and local interest rates, stability in key sectors like tourism and industry and ongoing structural reforms that strengthen the economy’s resilience.
On Jordan’s competitiveness, Mahrouq pointed to the country’s improvement in the Global Competitiveness Report for 2024, where Jordan advanced six positions to reach 48th globally.
Mahrouq further noted that the government is continuing to implement its economic modernisation vision, which aims to unlock the Kingdom’s potential across various sectors, improve the business environment, boost private investment and implement structural reforms in the water and energy sectors.
Omar Gharaibeh, Professor of Finance at Al al-Bayt University, expressed optimism for the national economy, particularly with Syria’s return to the broader economic scene. He noted that opening export and investment opportunities between Jordan and Syria would significantly benefit the Jordanian market.
Gharaibeh pointed out that the Central Bank of Jordan’s policy of reducing interest rates, along with the recently launched housing finance programme, will positively impact the real estate sector in 2025.
He emphasised that real estate is a major driver of economic activity, as it is linked to 40 sectors and a recovery in this sector will benefit the broader economy.
He also highlighted the growth of the mining sector, which saw a 6% increase, particularly driven by phosphate and potash production.
Gharaibeh expects the energy sector to grow in 2025, especially with Jordan’s agreements for exporting electricity. The electrical connections between regional countries are expected to generate significant revenues for the Kingdom.
Regarding oil prices, Gharaibeh projected significant savings in foreign currency due to falling oil prices, which would reduce import costs and free up funds for capital projects, further boosting the economy.
Economic expert Munir Dayeh echoed this optimism, stating that if the government continues to implement economic decisions that alleviate the burden on Jordanians and support various sectors with incentives and measures, the national economy is expected to improve.
Dayeh noted that the ongoing decline in interest rates would reduce borrowing costs, enhance people’s purchasing power and increase market liquidity. The increase in the minimum wage, effective early next year, will also raise the income of tens of thousands of citizens, boosting local consumption.
Dayeh concluded that a political breakthrough, such as the cessation of aggression in Gaza and regional stability, would improve tourism, transport and services, positively impacting the broader economy.
//Petra// AK
29/12/2024 20:18:28
