Azernews.Az

Jordan is set to experience an economic growth rate between 2.5 percent and 3 percent in 2025, bolstered by improvements in the business environment and increased investments, according to economic experts, Azernews reports, citing Arab news.

Adli Kandah noted that this growth would likely lead to a slight reduction in unemployment, although challenges in the labor market persist.

The projected growth aligns with the government’s recent corrective measures in the final quarter of 2024, including reduced penalties for unlicensed vehicles and tax cuts for electric cars. These steps are part of a broader effort to improve economic conditions and enhance both financial and social stability.

Jordan has maintained a steady average growth rate of 2.5 percent over the past decade, according to the World Bank, providing a solid foundation for future economic expansion.

Kandah also highlighted positive indicators, including regional developments that could benefit Jordan, particularly in foreign trade and investment sectors. He pointed to potential gains from developments in Syria, especially if international sanctions are lifted.

Raad Al-Tal, professor of Economics at the University of Jordan, noted that the country’s political stability and economic reforms have helped it remain resilient. Despite regional geopolitical challenges, including the ongoing situation in Gaza, Jordan has shown adaptability.

“The tourism sector, in particular, has shown notable recovery, bolstered by improved regional security and increased visitor numbers,” Al-Tal said, as reported by Pentra.

He also emphasized the positive impact of remittances from Jordanian expatriates, which have strengthened the country’s monetary reserves.

Ahmad Al-Majali, an economic researcher, also confirmed that despite external pressures and regional political turbulence, Jordan’s economy has shown positive performance in 2024.

Al-Majali attributed this resilience to the central role of monetary policy in maintaining stability and the progress achieved under the Economic Modernization Vision.

“The monetary policy has served as a fundamental pillar for the economy during this period,” he said.

He further emphasized that the Economic Modernization Vision has spurred optimism among investors, contributing to increased economic activity.

Looking ahead to 2025, experts anticipate that lower global interest rates could reduce local financing costs, providing an additional boost to investment. However, they stress that continued economic reforms and efficient public spending are crucial to sustaining this positive trajectory.