Jordan's delegation is participating in the annual meetings of the International Monetary Fund (IMF) and the World Bank Group, which commenced Monday in Bangkok, Thailand. These significant gatherings mark a key period for global economic policy and cooperation. The meetings are scheduled to continue through October 18, bringing together a wide array of global economic leaders. The Jordanian contingent, representing the Hashemite Kingdom, includes Minister of Planning and International Cooperation Zeina Toukan, Finance Minister Abdel Hakim Al-Shibli, and Central Bank of Jordan Governor Adel Al-Sharkas. Their presence shows Jordan's commitment to engaging with international partners on critical economic issues. These gatherings assemble finance ministers, central bank governors, senior economic officials, and representatives from various international financial institutions to discuss pressing global economic issues, including strategies for sustainable growth, financial stability, and addressing emerging challenges. The annual meetings serve as a vital platform for dialogue, policy coordination, and the exchange of ideas among member countries and international organizations.
Economic Reforms and Financing
Jordan is actively preparing to begin the sixth review of its economic reform program, a full initiative that is strongly supported by the International Monetary Fund’s (IMF) Extended Fund Facility (EFF). This program is a cornerstone of Jordan's efforts to strengthen its economic resilience and foster sustainable growth. The IMF initially approved the EFF for Jordan in January 2024, committing approximately $1.3 billion in financing to support the country's reform agenda. This substantial financial backing is designed to help Jordan implement structural reforms aimed at improving fiscal management, enhancing competitiveness, and promoting inclusive growth.
In addition to the EFF, the IMF also approved the Resilience and Sustainability Facility (RSF) in June 2025, offering around $700 million. The RSF is specifically tailored to assist countries in building resilience to long-term structural challenges, such as climate change and pandemic preparedness. These combined facilities demonstrate the international community's confidence in Jordan's reform trajectory and its commitment to addressing both immediate and future economic hurdles. On June 17, the IMF Executive Board completed Jordan’s fifth EFF review and its second RSF review, a significant milestone that made available total financing of approximately $188 million. This disbursement followed a thorough assessment of Jordan's progress in implementing agreed-upon policy measures and reforms under both facilities. The successful completion of these reviews notes Jordan's dedication to meeting its commitments and advancing its economic agenda.
The World Bank has also provided significant financial support to Jordan, complementing the IMF's efforts. In June, the institution approved two financing packages for the country worth a combined $1.1 billion. These packages are key for supporting various sectors and development initiatives across Jordan. One of these vital packages, approved on June 12, allocated $400 million in financing specifically for a health sector reform program. This program aims to enhance the quality, accessibility, and efficiency of healthcare services in the country, addressing key areas of public health. The health sector financing specifically includes $349 million from the International Bank for Reconstruction and Development (IBRD), which provides financial products and policy advice to help countries reduce poverty and extend the benefits of sustainable growth. An additional $51 million was provided from the Global Concessional Financing Facility (GCFF), which offers concessional financing to middle-income countries hosting large numbers of refugees. This dual funding mechanism shows the multi-faceted approach to supporting Jordan's health infrastructure. On June 30, the World Bank approved another $700 million loan as part of the second phase of Jordan’s Growth and Competitiveness Development Policy Financing Program. This program is designed to support policy reforms that foster private sector-led growth, improve the business environment, and create job opportunities for Jordanians.
Global Economic Headwinds
The global economic landscape forms a critical backdrop for these discussions in Bangkok. The ongoing US-Israeli war against Iran, now in its eighth month, and the resulting inflation and cost-of-living pressures are anticipated to be central to the agenda and side discussions at the Bangkok meetings. These geopolitical tensions have broad implications for global trade, energy markets, and supply chains, contributing to economic uncertainty worldwide. World Bank President Ajay Banga commented on the current economic climate, noting that global growth initially proved more resilient than anticipated when Iran closed the Strait of Hormuz, an event that significantly disrupted approximately 20% of global oil supplies. This resilience, however, is now being tested by a new set of challenges.
"While global growth had held up better than expected when Iran closed the Strait of Hormuz, disrupting around 20% of global oil supplies, pressures were beginning to build again," World Bank President Ajay Banga told Reuters. Banga further noted a confluence of factors contributing to these growing pressures. He pointed to a sharp increase in diesel and fertilizer prices, which have a direct impact on transportation costs and agricultural productivity, threatening food security and exacerbating inflationary trends. These price hikes are occurring simultaneously with an expected "super El Niño" phenomenon. Experts have warned that this "super El Niño" could contribute to 450,000 deaths from extreme heat, showing the severe environmental and economic challenges facing the global community. The combined impact of geopolitical conflicts, rising commodity prices, and climate-related disasters creates a complex and challenging environment for policymakers. These combined factors are expected to shape discussions on economic stability and future forecasts among the international delegates, as they seek to formulate coordinated responses to these interconnected crises.
Key Discussions and Outlook
Looking ahead, Jordan is preparing for the third review under the International Monetary Fund's (IMF) Resilience and Sustainability Facility (RSF). This upcoming review is a key step in ensuring that Jordan continues to build its capacity to address long-term economic and environmental challenges effectively. The completion of the sixth review of Jordan's economic reform program, supported by the IMF's Extended Fund Facility (EFF), would make available approximately 97.8 million Special Drawing Rights (SDRs). This amount is equivalent to around $132 million, providing additional financial resources to support Jordan's ongoing reform efforts and stabilize its economy. The SDR is an international reserve asset created by the IMF to supplement its member countries’ official reserves, and its value is based on a basket of five major currencies.
The upcoming RSF review will specifically assess reforms in Jordan designed to strengthen the economy’s ability to withstand long-term challenges. These reforms particularly target the water, energy, and health emergency preparedness sectors, aiming to enhance resilience in these critical areas. In the water sector, reforms may include initiatives to improve water management, increase water efficiency, and explore alternative water sources, key for a water-scarce region. In the energy sector, the focus could be on transitioning to renewable energy sources, enhancing energy efficiency, and securing stable energy supplies. For health emergency preparedness, reforms would likely involve strengthening public health systems, improving disease surveillance, and ensuring adequate resources for responding to future health crises. These targeted reforms are vital for Jordan's long-term stability and sustainable development in the face of evolving global challenges.
