Moody’s maintains Jordan’s credit rating to Ba3 with stable outlook

AMMAN — Sovereign credit rating agency Moody’s Ratings has maintained Jordan’s credit rating at Ba3 with a stable outlook, according to a recent report released during the agency’s visit to the Kingdom.

The report underscored Jordan’s resilience in navigating regional security challenges, attributing this to sound economic and fiscal management, the Jordan News Agency, Petra, reported.  

Moody’s projects economic growth of 2.4 per cent in 2024, rising to between 2.7 per cent and 3 per cent in 2025-2026.

Growth was observed across nearly all sectors in the first half of 2024, although regional instability led to a slight drop in tourism revenues during the first nine months of the year. 

Despite this, the agency said that the impact on government revenue collection has been minimal.

The report anticipated that the government will implement measures to curtail the primary budget deficit to 2.4 per cent of GDP in 2024 and further reduce it to 2 per cent by 2025.

Moody’s highlighted the critical role of Jordan’s ongoing economic reform programme with the International Monetary Fund (IMF), describing it as key to ensuring fiscal sustainability.

Finance Minister Abdelhakim Shibli said that retaining the credit rating despite escalating regional tensions demonstrates international confidence in Jordan’s economic policies and reform efforts. 

He stressed the government’s dedication to reforms inspired by the Economic Modernisation Vision and the IMF-backed programme, aimed at spurring growth and alleviating financial pressures on citizens.

Recent government measures to ease economic burdens include waiving fines on overdue government payments, offering a 50 per cent reduction in registration fees for residential properties larger than 150 square metres, and exempting expired vehicle licenses from ownership transfer and re-registration fees, Shibli noted.

Planning and International Cooperation Minister ZeinaToukan said that structural reforms enacted in recent years have bolstered the economy’s resilience, stabilised growth rates, and enhanced international confidence, as reflected in assessments by Moody’s and other global agencies.

Central Bank of Jordan Governor Adel Sharkas highlighted the importance of the banking sector’s robustness and external sector resilience in maintaining the credit rating. 

Sharkas noted that comprehensive reforms under the Economic Modernisation Vision have boosted the economy’s ability to adapt to challenges and reinforced its appeal to international institutions.

Moody’s report is seen as an endorsement of the Kingdom’s reform trajectory and fiscal discipline, underscoring the importance of continued efforts to secure sustainable economic growth.