AMMAN — The government presented the 2025 draft state budget law to the Lower House on Tuesday, with a projected economic growth of 2.9 per cent in in 2026 and an increase in capital spending by 16.8 per cent to JD1.6 billion.

Reading a detailed report before lawmakers, Minister of Finance Abdul Hakim Shebli said that the Kingdom’s economy is expected to grow by “at least 2.9 per cent in real terms next year, with inflation projected to remain moderate at around 2 per cent.”

Shebli said the budget was designed to reinforce fiscal stability while advancing economic modernisation and social protection goals.

Despite global headwinds marked by trade tensions, protectionist policies, and geopolitical instability, the Kingdom’s economy has demonstrated resilience. Jordan has maintained financial stability and continued to grow steadily despite a volatile regional and global environment, he said, according to the Jordan News Agency, Petra.

According to the minister, the International Monetary Fund (IMF) expects global growth to remain sluggish at 3.2 per cent this year, with world trade expanding by just 2.9 per cent.

“By comparison, Jordan’s GDP grew by 2.7 per cent and 2.8 per cent in the first and second quarters of 2025 respectively, the strongest performance in two years, supported by gains in agriculture, manufacturing, and utilities.”

Shebli said that foreign reserves reached an “unprecedented” US$24 billion by the end of October, enough to cover more than nine months of imports.

Local revenues now finance nearly 89 per cent of current expenditures, while the fiscal deficit after grants narrowed to JD2.125 billion. The net deficit for all government units totalled JD671 million, he said.

Shebli said foreign direct investment rose by 36 per cent in the first half of 2025 to about US$1 billion, reflecting investor confidence in Jordan’s economic environment. “Strategic projects in the water, energy, and transport sectors are expected to attract a further US$10 billion in investment during 2026.”

He also said that inflation remained among the lowest in the region at 1.9 per cent during the first nine months of 2025.

“Exports increased by 7.8 per cent, imports by 5.8 per cent, and tourism receipts by 6.8 per cent to nearly US$6 billion, while remittances rose by 3.4 per cent.”

The minister added that the current account deficit, which stood at 7.4 per cent of GDP in the first half of 2025, is projected to fall to 5.1 per cent by year’s end.

Highlighting the Kingdom’s partnership with international institutions, Shebli said the IMF earlier this year approved a 30-month, US$700 million Resilience and Sustainability Facility to strengthen fiscal sustainability in the energy and water sectors and bolster Jordan’s response capacity to public health challenges.

Under the 2026 draft budget, the fiscal deficit is projected to decline to 4.6 per cent of GDP, down from 5.2 per cent in 2025, while public debt is expected to fall to 80 per cent of GDP by 2028, he said.

“Capital spending will increase by 16.8 per cent to JD1.6 billion, focusing on priority sectors such as water, energy, tourism, and transport.”

The allocations include JD60 million for the National Water Carrier Project, JD35 million for gas exploration in Risheh, JD210 million for municipal development, JD100 million for governorate-level projects, JD50 million for tourism promotion, and JD26 million to upgrade the public transport network, the minister said.

The government also pledged continued support for social welfare programmes, he said, with JD124 million allocated for the Care programme, which provides cancer treatment for 4.1 million citizens.

“The National Aid Fund will receive JD280 million, while JD171 million has been earmarked to subsidise bread and essential goods, and JD80 million to maintain domestic gasoline subsidies.”

Education and health remain key priorities, with the Ministry of Education’s budget standing at JD1.36 billion, including JD135 million for vocational and digital education, teacher training, and school construction, he said.

The Ministry of Health will receive JD785 million, with JD135 million for medicines and supplies and JD71 million for developing hospital and healthcare infrastructure.

Total public expenditure in 2026 is estimated at JD13.056 billion, up 6.4 per cent from 2025, while total revenues are projected to reach JD10.931 billion, an increase of 9.1 per cent. Local revenues are forecast at JD10.196 billion, with foreign grants amounting to JD735 million.

Shebli said the 2026 budget reflects "a prudent fiscal policy that supports growth, protects citizens’ purchasing power, and advances national reform priorities," aligning with the goals of Jordan’s Economic Modernisation Vision and the Public Sector Reform Roadmap.

 

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