Standard and Poor’s credit rating agency announced that Jordan’s long-term sovereign credit rating will remain “B+/Stable/B”. S and P projected that the average fiscal deficit of the central government will reach 77 percent of GDP in 2026, and that Jordan’s economic growth momentum will continue in the medium term (2023-2026), with the average growth rate reaching 3 percent in light of the continued implementation of structural reforms. S and P attributed its assessment to the success of financial reforms, which maintained financial stability by reducing the deficit and debt and raising domestic revenues. The agency also pointed to the success of the Central Bank’s monetary policies in addressing global inflationary pressures, noting that the government has carried out economic structural reforms aimed at enhancing Jordan’s ability to attract investment. It also noted the national economy’s ability to face global challenges in light of the turmoil the global economy is going through. It indicated continued improvement in the performance of public finances during the past period, as a result of reforms taken by the government, as tax revenues increased by 7.3 percent during the first half of the year 2023, compared to the same period in 2022. Finance Minister Mohammad Al-Issis commented that the projection of Jordan’s credit rating is another global testimony the national economy achieved last year, which underscored the success of financial policies as the foundation stone of growth and job-creation. He said maintaining financial stability has protected the middle class from serious repercussions that other countries were exposed to in facing global crises. For his part, Central Bank Governor Adel Sharkas said the S and P’s fixing of the credit rating and future outlook for the Jordanian economy, despite persistent global geopolitical and economic uncertainty, sends a positive and reassuring message on the trajectory of the national economy, as it enhances Jordan’s investment environment. He said that the outlook reflects the Kingdom’s success in maintaining the soundness of macroeconomic fundamentals, and underlines the confidence of international institutions in the monetary and banking policies adopted by the Central Bank of Jordan.

Source: Jordan News Agency