Amman: Standard and Poor’s (SandP), the sovereign credit rating agency, has reaffirmed Jordan’s B+/B credit rating with a stable outlook, underscoring the nation’s resilience amid the ongoing conflict in Gaza and broader regional geopolitical tensions.
SandP commended Jordan for its effective implementation of fiscal and monetary structural reforms, designed to spur growth and reduce national debt.
These reforms, focusing on enhancing tax compliance, revitalizing investment, and improving the ease of doing business, are expected to position Jordan on a sustainable path of economic activity and a gradual debt reduction to 78.9% of GDP by 2027.
The rating agency also noted Jordan’s “adequate domestic policy buffers” as a key factor in mitigating the impact of regional conflicts on tourism and the wider economy.
The approval of a new International Monetary Fund (IMF) lending program on January 10 was highlighted as a significant factor in maintaining the stable rating, along with Jordan’s strong relations wi
th donors and multilateral institutions.
These elements collectively differentiate Jordan from other regional countries facing downgrades due to the instability’s potential ramifications and transmission risks.
Finance Minister Mohamad Al-Ississ responded to the rating’s outlook by emphasizing the government’s commitment to macrofiscal stability through prudent fiscal policies, which prioritize the protection of the middle class’s standard of living despite regional unrest.
“This affirmation demonstrates an additional testament confirming the success of the government’s prudent fiscal policies taken to defend Jordan’s macrofiscal stability,” Al-Ississ stated.
Governor of the Central Bank of Jordan (CBJ), Adel Al-Sharkas, attributed the credit rating affirmation and stable economic outlook to Jordan’s enduring economic stability, achieved even in the face of unfavorable geopolitical and economic conditions globally.
Al-Sharkas highlighted the CBJ’s success in maintaining monetary stability, safeguarding t
he currency peg with high reserves totaling $18.1 billion, and achieving the lowest dollarization rate since 2016 at 17.7%.
He also pointed to Jordan’s adequate inflation levels, which stood at 2.1% in 2023 and decreased to 2.0% in January 2024, and the financial system’s robust risk management capabilities.
This reaffirmation from SandP reflects confidence in Jordan’s strategic economic policies and its ability to navigate through regional and global challenges, maintaining its trajectory towards fiscal stability and economic growth.
Source: Jordan News Agency