Fitch affirms Jordan’s stable outlook despite regional turmoil

AMMAN — Despite the regional turmoil, sovereign credit rating agency Fitch upheld the Kingdom’s  rating at “BB-", affirming a stable outlook and retaining its thrust amid challenging surroundings.

According to Fitch's analysis, Jordan’s rating came on the back of its record of macroeconomic stability, progress in fiscal and economic reform agendas, and resilient financing linked to the liquid banking sector, public pension fund and international support. 

Moreover, a “BB-“ rating signifies the affirmation of Jordan’s steadfast efforts to fiscal reformist track, situating the Kingdom on the path towards the achievement of a declining general government debt. 

Despite the regional turbulent situation, the credit rating agency estimated Jordan’s GDP to continue to grow at a rate of 2.3 per cent in 2024, with a positive trajectory towards 2.8 per cent in 2025. 

Minister of Finance Mohamad Al-Ississ affirmed that “this recognition by Fitch is yet another testament of Jordan’s wisdom in navigating the unstable regional circumstances and is a testament to our resilience”. 

He added that Jordan will continue with its efforts directed towards safeguarding the middle class, through moving away from increasing the tax burden. 

The minister said that the affirmation by Fitch “solidifies the most recent upgrade by Moody’s Ratings recorded following the successful competition of the first International Monetary Fund review, supported by the Extended Fund Facility programme, thereby receiving international testaments by three reputable international institutions on “the soundness of the fiscal policy that Jordan has been leading…to safeguard the standards of living for our citizens”.

Governor of the Central Bank of Jordan Adel Al Sharkas, highlighted the importance of Fitch’s analysis in the stabilisation of Jordan’s credit rating, he noted that this is a clear reflection of Jordan’s stabilised economy and strong fiscal policies.

Economist Waseem Hussein told The Jordan Times that “Jordan leads a strong and prosperous monetary policy…this reflects the high degree of responsibility and commitment to improving the overall economic circumstances in the Kingdom”. 

According to a Ministry of Finance statement, the general government deficit will decline to 2.6 per cent and 2.4 per cent of Gross Domestic Product in 2024 and 2025, respectively, through prudential fiscal management despite higher global interest rates.