Khaberni - Moody's credit rating agency announced the completion of its periodic review of Jordan's ratings, confirming that the report does not constitute any new rating decision, and instead provides a continuing assessment of Jordan's economic and financial situation.
According to Moody's review, Jordan's long-term local and foreign currency ratings (Ba3) reflect the strength of state institutions in setting economic and financial policies, strong international support, and access to significant local savings, where positive indicators are balanced by challenges such as high public debt, unemployment, and relatively modest economic growth, alongside volatile regional pressures.
Jordan has maintained macroeconomic stability this year, with real GDP growth at 2.8% in the first half of the year, supported by sectors such as manufacturing, tourism, and business services, and it is expected to end the year at 2.7%.
The growth rate is expected to rise to about 3% in 2026-2027, supported by key projects such as the Aqaba water desalination project, and the development of the Risha gas field. Meanwhile, Jordan's external position benefits from strong tourist inflows and a sharp increase in exports to Syria, which helps diversify the export base.
The public government deficit is expected to remain at 2.9% of GDP in 2025 before decreasing to about 2.1% in 2026-2027, as tax reforms continue under Jordan's program with the International Monetary Fund to support gradual fiscal consolidation.
Jordan's economic strength rating reflects moderate growth performance and economic openness with low growth volatility, while institutional strength and governance are based on Jordan's record in effectively implementing fiscal policies and economic reforms, with the ability to handle economic shocks.
Jordan's financial strength rating is also reflected due to the dinar's reliable linkage to the dollar, which reduces exposure of government obligations to adverse exchange rate fluctuations.
Future outlook for Jordan's credit profile
Moody's indicates that widespread reforms could enhance foreign investments, improve growth in the medium term, reduce unemployment and social risks, which could strengthen the Jordanian economy in the long run.
A reliable and sustainable decrease in regional geopolitical risks could lift constraints on Jordan's long-term economic development prospects, potentially leading to an upgrade of Jordan's credit rating.
