Despite global challenges, Jordan manages to maintain fiscal stability — CBJ governor

AMMAN — Amid the severe headwinds facing economies and banking institutions, the Jordanian banking sector continues to show resilience, Governor of the Central Bank of Jordan (CBJ) Adel Sharkas said on Saturday.

Speaking during the 2nd Jordanian Banking Summit, organised by the Association of Banks in Jordan (ABJ), Sharkas said that “the most tangible achievement in 2023 was the continuation of economic reforms, following the completion of the sixth and the seventh reviews of the IMF-funded economic reform programme without delays or increasing taxes or imposing new ones”.

"Such reforms enabled Jordan to start a four-year economic reform programme worth JD1.2 billion, amid exceptional circumstances and challenges facing the region and the entire world," he said. 

Sharkas said the launch of the green finance strategy, the first in the Middle East, was among the key achievements in 2023. 

The 2024 Jordanian Banking Summit, attended by governing boards of banks, chief executives, director generals and experts, discussed the latest updates in the banking sector, reviewed economic and financial developments and perspectives on the trends most likely to shape sector policies in 2024.

Sharkas explained that all indications point to continued difficulties caused by the geopolitical and economic turmoil at the regional and international levels."However, Jordan’s banking sector continues to take firm steps towards supporting the national economy."

Economic growth is likely to stabilise at 2.6 per cent in 2024 as the effects of the ongoing war on Gaza take a broader toll, he said.

However, the Kingdom’s tourism income rose by 27.4 per cent, with a record 6.3 million international tourist arrivals. Additionally, Jordan’s exports reached JD8.3 billion, while non-traditional national exports grew by 11.4 per cent during the first 10 months of 2023, the governor said.

Inflation is projected to grow from an estimated 2.1 per cent in 2023 to 2.7 per cent in 2024, according to Sharkas.

ABJ Chairman Bassem Khalil  Salem, said that, despite the ongoing geopolitical turmoil and continuous economic shocks, the Jordanian banking system has shown great resilience and was capable of achieving “reasonable results”.

“In 2023, the series of global economic developments taking place in a challenging global context have given a gloomy and more uncertain outlook," Al Salem said. 

In 2023, the rate of foreign investment in Jordan increased, the country’s performance improved in various indicators and the pace of reforms has been accelerated, he added

ABJ said that there are 20 banks operating in the Kingdom, 15 of which are local banks, operating through 865 branches and over 2,200 automated teller machines across the country.

The banking sector employs approximately 22,400 people, according to ABJ.