The International Monetary Fund (IMF) has disbursed $834 million to Jordan in two tranches to aid the country’s economic initiatives. This funding includes an immediate access of $134 million following the completion of the third review of Jordan’s External Fund Facility (EFF), which supports Amman’s economic program.

Additionally, the IMF approved an extra $700 million through the Resilience and Sustainability Facility (RSF) to address Jordan’s long-term challenges, particularly in the water and electricity sectors, and to enhance its capacity to manage public health emergencies. The fund noted that Jordan has consistently met its targets under the EFF program, with an economic growth rate of 2.5 percent reported last year, and stronger growth anticipated this year than previously expected.

The IMF’s approval for a $1.2 billion EFF program with Jordan occurred last year. Kenji Okamura, the IMF deputy managing director and acting chairman, stated that “Jordan continues to maintain macroeconomic stability despite external headwinds from regional conflicts and heightened global economic uncertainty, owing to the authorities’ steadfast pursuit of sound policies and continued strong international support.”

The IMF’s latest Regional Economic Outlook suggests an anticipated increase in economic activity this year following disruptions caused by the Gaza conflict. The outlook estimates Jordan’s economy will grow by 2.6 percent this year and further accelerate to 2.9 percent by 2026. However, these projections are lower than earlier forecasts, reflecting a general downward trend due to tariff uncertainties.

Jordan may also face challenges from reduced foreign assistance, particularly following the dismantling of the US Agency for International Development, which has been a significant source of support in the region. The IMF highlighted that reforms have bolstered Jordan’s fiscal sustainability, emphasizing the need for further efforts to enhance revenue mobilization and reduce public debt.

Mr. Okamura added that “Efforts should also continue to improve the efficiency and viability of the public utilities to preserve the sustainability of public finances, while improving service delivery.” The IMF encouraged Jordan to accelerate structural reforms to create a more favorable business environment and attract private investment.

Lastly, the fund noted that strong and timely donor support is crucial for Jordan to navigate its challenging external environment, manage the large number of refugees, and achieve its development goals. The reform measures under the RSF will concentrate on enhancing financial sustainability in the energy and water sectors, improving fiscal and financial sector resilience, and bolstering pandemic preparedness.