By: Business Editor
Jordan Daily - Jordan's economy grew by 2.9% year-on-year in the first quarter of 2026, up from 2.7% in the same period a year earlier, demonstrating resilience despite regional conflict and geopolitical uncertainty, Minister of State for Economic Affairs Muhannad Shehadeh said on Sunday.
Shehadeh said in press remarks seen by Jordan Daily, the growth was particularly significant because roughly one-third of the reporting period coincided with the war in the region, adding that Jordan had maintained steady economic expansion while some regional and global economies were negatively affected by the conflict.
Growth was broad-based rather than concentrated in a single sector, he said. Agriculture grew 6.8%, manufacturing 5.3% and electricity 4.3%. Manufacturing made the largest contribution to overall growth, accounting for 16.6% of the increase in gross domestic product, reflecting its role as the source of about 95% of Jordan's exports and a major employer.
The minister said the government had responded early to the geopolitical crisis with gradual and pragmatic measures, particularly in the fuel sector, helping keep inflation under control. Annual inflation stood at 1.88%, which he described as low compared with neighboring countries.
Jordan's banking sector also remained strong, with foreign reserves exceeding $27 billion, ample liquidity and a capital adequacy ratio of 18%, above the minimum requirements under Basel III standards, Shehadeh said.
He added that activity on the Amman Stock Exchange had strengthened this year, with average daily trading rising 13.6% compared with 8.8% last year. The market capitalization of listed companies increased 5%, while the benchmark index gained 6.6%, extending last year's 45% rise.
The construction sector also posted solid gains, with building permits rising 14.7% and licensed construction areas increasing 20% during the first four months of the year.
National exports climbed 7.3% in the first quarter from a year earlier, driven in part by stronger shipments to the Netherlands, up 74%, Belgium, up 51%, and higher trade with Syria, which increased 39%.
Looking ahead, Shehadeh said the government remained committed to implementing the Economic Modernization Vision, including reaching financial close this year on the National Water Carrier project, advancing the national railway project, expanding investment in the Risha gas field, and accelerating development of a new city project aimed at supporting long-term growth.
