S&P Affirms Jordan’s Credit Rating Despite Regional Conditions
Al-Taj News – S&P Global Ratings announced that it had affirmed Jordan’s long-term sovereign credit rating in both local and foreign currencies at BB-, with a stable outlook, despite the regional conditions that have negatively affected most countries.
In its report issued Friday, the agency noted that the affirmation was driven by the resilience of the Jordanian economy in the face of regional developments, progress made in economic, fiscal and monetary reforms, higher levels of foreign reserves, and continued strong support from international partners and at the bilateral level.
The agency projected Jordan’s economy to grow by 2.5% in 2026, with average growth accelerating to around 3.2% during 2027-2029, supported by the rerouting of regional trade flows through Jordan, particularly via the Port of Aqaba, the continued strength of remittances from Jordanians working abroad, as well as contributions from the industrial and mining sectors and major projects in supporting economic activity.
Regarding public finance indicators, the agency said the consolidated general government budget deficit would reach 2.2% of gross domestic product in 2026, noting that government measures aimed at reducing fiscal pressures through expenditure control and reprioritization would contribute to gradually improving fiscal deficits during 2027-2029.
On monetary indicators, the agency noted that the peg of the Jordanian dinar to the U.S. dollar had contributed to supporting monetary and price stability.
It expected gross foreign reserves to reach around $26 billion by the end of 2026, noting that inflation remains at moderate levels despite the rise in global oil and gas prices.
S&P Global Ratings also projected average inflation to stand at around 2.4% during 2026-2029, supported by government policies aimed at limiting the impact of higher oil prices on domestic prices.
The agency affirmed that the economic reform program supported by the International Monetary Fund represents an important pillar of the Kingdom’s economic and fiscal policies, alongside continued support from friendly countries and international financial institutions, considering these factors key elements supporting Jordan’s sovereign credit rating.
