Khaberni - Improved economic performance and rising foreign reserves support Jordan's credit outlook.
A report issued by Standard & Poor's Global Ratings on the outlook for sovereign ratings in the Middle East indicates that the Jordanian economy is heading towards gradual growth over the coming years, with GDP growth expected to reach 2.8% in 2025, 3% in 2026, and 3.1% in 2027.
According to the report, which discussed the outlook for sovereign economies in the Middle East and included no new decisions to change or implement credit ratings, Jordan has maintained its credit rating at -BB with a stable outlook, reflecting a balance between progress in financial and economic reforms on one hand, and ongoing regional challenges on the other.
The agency noted that the stable outlook is based on relative improvement in economic performance and rising foreign currency reserves, alongside ongoing financial and economic reforms, against the backdrop of high public debt levels and a widening current account deficit, as well as risks associated with security conditions in the region.
Standard & Poor's explained that if external imbalances recede, either through sustainable improvement in the current account deficit or an accelerated pace of foreign reserves accumulation, and if net government debt is reduced to levels lower than current expectations without harming economic growth, Jordan's credit rating could potentially improve.
The report confirmed that the stable future outlook reflects Jordan's ability to maintain a delicate balance between structural reforms and international support on one hand, and geopolitical and economic challenges on the other, within a regional environment characterized by oil price volatility and high levels of uncertainty.
