In Jordan we focus on:
Supporting sustainable energy through investments that promote energy efficiency hroughout the economy, the development of new sources of renewable energy and Jordan's transition to a liberalised, efficient and sustainable energy sector;
Direct and indirect financing of private enterprises in the corporate sector, with a focus on SMEs, improvements in the agribusiness value chain as well as energy and water use efficiency; all aimed at boosting the creation of high quality jobs, including for women to further develop a thriving private sector;
Promoting infrastructure reform and facilitating non-sovereign financing, where feasible. in order to develop efficient delivery of infrastructure services. Supporting PPPs and private sector participation in the infrastructure sector. The EBRD will also aim to support water and energy efficiency in the municipal sector.
We continue to cooperate with other IFIs, the EU and bilateral partners to ensure that our operations take full account of their work as well.
The EBRD's 2018 Annual Meeting and Business Forum was held on the shores of the Dead Sea.
The EBRD’s Jordan strategy was adopted on 27 January 2020
Jordan's policy response to the coronavirus crisis
The EBRD is monitoring Jordan's policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.
EBRD forecast for Jordan’s Real GDP Growth in 2020 -6.0%
EBRD forecast for Jordan’s Real GDP Growth in 2021 4.0%
The rate of growth in Jordan remained subdued in 2019, at 2.0 per cent, and slowed further to 1.3 per cent year-on-year in the first quarter of 2020, as the economy was held back by the Covid-19 crisis and the related containment measures. Insurance, other financial services, real estate and the business services were the main sectors supporting growth, alongside government and social services. Tourism, usually a major driver of growth, declined by 62 per cent year-on-year in the first half of 2020, directly impacted by the Covid-19 crisis. Inflation remained low in the first eight months of 2020, averaging 0.5 per cent year-on-year.
The economic fallout from the coronavirus containment measures is expected to result in a GDP contraction of 6.0 per cent in 2020, due mainly to the contraction in tourism and crossborder trade. Growth is expected to pick up to 4.0 per cent in 2021, sustained by the lower cost of imported energy, increased finance provided to SMEs under various schemes implemented by the Central Bank of Jordan, and reforms anchored in the IMF-supported programme.
The main risks to the outlook include social distancing remaining in place for longer than expected and delays in reforms in the run-up to the parliamentary elections in November 2020. Other risks to the outlook include an erosion of real competitiveness stemming from the strengthening of the dinar (in light of the peg to the US dollar), stronger pressure on the overvalued exchange rate shouldcapital inflows fall short of expectations, regional instability, and slower-than-expected recovery of partner economies.