AMMAN — Jordan’s economy is expected to regain momentum next year, with growth forecast to accelerate to 2.8 per cent in 2027, as easing energy prices and the resolution of trade disruptions support economic activity, according to the European Bank for Reconstruction and Development (EBRD).

 

The EBRD’s latest Regional Economic Prospects report projects Jordan’s economy to grow by 2.5 per cent in 2026 before strengthening in 2027, despite continued uncertainty across the region.

 

The expected improvement reflects the prospect of fewer trade bottlenecks and lower energy prices, which would help ease some of the pressures currently facing the Jordan and regional economies.

 

Jordan has also maintained a relatively strong external position, with international reserves covering more than eight months of imports. The EBRD said that the level of reserves is helping support macroeconomic stability amid heightened regional uncertainty.

 

Inflation, meanwhile, has remained contained despite higher fuel prices. It reached a peak of 2.8 per cent in May 2026 before moderating to 2.7 per cent in July, according to the report.

 

The EBRD said that regional instability, trade interruptions and increased uncertainty around tourism and investment flows are weighing on Jordan’s growth this year. However, the projected acceleration in 2027 points to improved economic conditions if regional trade routes stabilise and energy costs decline.

 

Jordan is among several economies in the southern and eastern Mediterranean that have shown resilience despite a challenging regional environment.

 

The EBRD said that stronger agricultural output, tourism receipts and remittance inflows have supported economic activity in a number of countries, including Jordan.

 

Despite continued uncertainty stemming from regional developments, the International Monetary Fund (IMF) has projected limited impact on Jordan’s economy, with economic growth forecast to reach 2.7 per cent in 2026 before accelerating to 3.1 per cent in 2027.

 

Barring additional shocks, the IMF also expected economic growth in Jordan to accelerate further in the coming years, to over 3 per cent, also supported by several large investment projects, including the Aqaba Amman Conveyor.

 

Deeper regional economic integration, notably with Syria, Lebanon, and Iraq, could further enhance growth prospects, the global lender said.