AMMAN — Standard & Poor’s (S&P) has affirmed Jordan’s long-term local- and foreign-currency sovereign credit rating at BB- with a stable outlook, citing the resilience of the Kingdom’s economy despite challenging regional conditions.

 

In a report released on Friday, the agency said that the rating affirmation reflects Jordan’s economic resilience, progress in economic, fiscal and monetary reforms, high foreign exchange reserves, and continued strong bilateral and international support, according to the Jordan News Agency, Petra.

 

S&P projected Jordan’s economy to grow by 2.5 per cent in 2026, with average annual growth accelerating to nearly 3.2 per cent between 2027 and 2029.

 

The agency attributed the projected growth to redirected regional trade flows through Jordan, particularly via the Port of Aqaba, sustained remittances from Jordanians working abroad, and contributions from the industrial and mining sectors, as well as major projects.

 

On fiscal indicators, S&P estimated that the consolidated general government budget deficit will reach 2.2 per cent of GDP in 2026. It said government measures to contain fiscal pressures through expenditure controls and prioritisation are expected to gradually reduce deficits between 2027 and 2029.

 

On monetary policy, the agency said that the Jordanian Dinar’s peg to the US dollar has helped strengthen monetary and price stability.

 

Jordan’s foreign exchange reserves are projected to reach about $26 billion by the end of 2026, while inflation is expected to remain moderate despite higher global oil and gas prices.

 

S&P forecast average inflation at 2.4 per cent between 2026 and 2029, supported by government policies aimed at shielding domestic prices from international energy price shocks.

 

The agency also said the International Monetary Fund (IMF)-supported economic reform programme remains an important anchor for Jordan’s economic and fiscal policies.

 

Continued support from other countries and international financial institutions, S&P said, also remains a key factor underpinning Jordan’s sovereign credit rating.