jordan pulse -

Fitch Ratings has affirmed Jordan’s long-term foreign currency issuer default rating at "BB-" with a stable outlook, despite ongoing regional security challenges.

In its latest report, the agency cited the Kingdom’s economic and financial stability, resilience to external shocks, progress in structural reforms, the strength of the banking sector, and sustained international support as key credit strengths.

Fitch projected economic growth of around 2.6 percent in 2026, noting that security concerns have weighed on the tourism sector, particularly through a decline in European arrivals. The agency said this follows growth of 3 percent recorded in the last quarter of 2025, supported by increased public and foreign investment.

The report indicated that growth is expected to accelerate in 2027, driven by higher capital expenditure, progress in major development projects, including the national carrier initiative, and expanding trade with Syria and Iraq.

At the international level, Fitch highlighted continued strong backing for Jordan from donor countries and institutions, and expected the Kingdom to maintain implementation of its economic reform program in cooperation with the International Monetary Fund.

On fiscal indicators, the agency projected a gradual decline in public debt as a share of gross domestic product beginning in 2027.

Monetary indicators are expected to remain stable, supported by the Jordanian dinar’s peg to the United States dollar, robust foreign reserves, low dollarization levels, and a resilient banking sector.

Fitch forecasts average inflation at around 2.2 percent during 2026–2027, reflecting the lagged impact of higher global oil prices on domestic fuel costs.

The affirmation follows similar decisions by Standard & Poor’s and Moody’s earlier this year to maintain Jordan’s sovereign rating, as well as the International Monetary Fund’s announcement of a staff-level agreement on the fifth review of the Extended Fund Facility and the second review of the Resilience and Sustainability Facility, underscoring continued confidence in the national economy’s capacity to navigate regional challenges.

//Petra// AJ