Fitch Ratings has affirmed Jordan’s long-term foreign currency issuer default rating at "BB-", assigning a stable outlook to the Hashemite Kingdom. This decision reflects the international credit rating agency's assessment of several key factors underpinning the nation's economic health and stability. Fitch specifically cited Jordan's economic and financial stability, its demonstrated resilience to external shocks, and ongoing progress in structural reforms as primary credit strengths. The strong strength of the banking sector and the consistent, sustained international support Jordan receives were noted as significant contributors to the affirmed rating. The stable outlook indicates Fitch's expectation that the Kingdom's credit profile will remain consistent over the medium term, reflecting a balanced view of its strengths and challenges.
Growth Projections and Strengths
Looking ahead, Fitch Ratings projected Jordan's economic growth to reach approximately 2.6 percent in 2026. This forecast builds upon the country's recent performance, which saw a recorded growth of 3 percent in the last quarter of 2025. The agency anticipates a further acceleration in economic growth in 2027. This projected acceleration is expected to be driven by several key factors, including increased capital expenditure across various sectors, advancements in significant national development projects such as the national carrier initiative, and an expansion of trade activities, particularly with neighboring countries like Syria and Iraq. Fitch also showed the continued strong backing Jordan receives from donor countries and international institutions, which provides a key buffer against economic volatility. Within the Kingdom, monetary indicators are expected to maintain their stability, further supporting the positive outlook, according to the agency's assessment.
Reform Progress and Debt Outlook
Jordan is expected to steadfastly maintain its economic reform program, implemented in close cooperation with the International Monetary Fund (IMF). This commitment to reform is a critical element in Fitch's assessment of the country's fiscal trajectory. The credit rating agency projected a gradual decline in the country's public debt as a share of gross domestic product (GDP), a positive trend anticipated to begin in 2027. This projected reduction in the debt-to-GDP ratio signals an improvement in fiscal sustainability over the coming years. In terms of price stability, Fitch also forecasts average inflation in Jordan to be approximately 2.2 percent during the 2026–2027 period, indicating a manageable inflation environment. The ongoing structural reforms are viewed as essential for enhancing economic competitiveness and attracting foreign investment.
Sectoral Challenges and International Support
Despite the overall positive assessment, security concerns have had an impact on Jordan's vital tourism sector. This has notably led to a decline in international arrivals, particularly from European markets, affecting a key source of foreign exchange and economic activity. In response to ongoing economic challenges and to bolster its reform agenda, the International Monetary Fund announced a staff-level agreement on the fifth review of the Extended Fund Facility (EFF) for Jordan. This significant agreement also included the second review of the Resilience and Sustainability Facility (RSF), providing continued and substantial financial and technical support to Jordan's economic framework. This international backing is key for mitigating risks and supporting the country's long-term development goals.
Broader Sovereign Assessment
The affirmation by Fitch Ratings aligns with assessments from other leading global credit rating agencies. Standard & Poor’s (S&P) and Moody’s, two other major credit rating agencies, had previously affirmed Jordan’s sovereign rating earlier in the year. These consistent affirmations from multiple reputable agencies reflect a shared and positive assessment of the Kingdom's creditworthiness and its capacity to meet its financial obligations, reinforcing investor confidence in Jordan's economic stability.
