S&P Keeps Kingdom's Credit Rating
Standard & Poor's has affirmed Jordan's sovereign credit rating at BB-, with a stable outlook, despite regional challenges that have negatively affected neighboring countries. The agency noted that Jordan's economic resilience, along with ongoing economic and financial reforms and the rise in foreign reserves, has contributed to the stability of the rating. It forecasted that the country's economic growth would reach around 2.5% in 2026, with an acceleration to 3.2% between 2027 and 2029, supported by increased trade activity through the Aqaba Port, remittances from overseas workers, as well as international support and the fiscal reform program agreed with the International Monetary Fund. The agency also indicated that the projected budget deficit would be 2.2% of GDP in 2026, with a gradual improvement in subsequent years due to expenditure controls and re-prioritization. The stability of the Jordanian dinar against the US dollar has helped stabilize prices, with foreign reserves expected to approximate $26 billion by the end of 2026. Inflation is expected to remain moderate at around 2.4% between 2026 and 2029, despite rising global oil and gas prices.
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