Managing Public Debt in Jordan: A Strategic Overview

Ensuring fiscal sustainability is crucial for evaluating financial trends and burdens, reflecting the government’s capacity to meet obligations. Economists use the debt-to-GDP ratio to assess a nation’s debt settlement ability. In Jordan, public debt has surged, reaching 114.7% of GDP. The government seeks to reduce the debt-to-GDP ratio to 75.2% by 2029 through economic reforms.

Jordan has received credit rating upgrades from agencies like Moody’s and S&P, despite challenges like donor fatigue. The government’s focus on public financial management efficiency has improved revenue collection rates, enhancing investor confidence.

The Kingdom’s debt portfolio includes domestic and external sources, with a balanced maturity structure, minimizing refinancing risks. Over 55% of external debt comprises concessional loans with favorable terms. Foreign reserves cover 70.1% of external debt, indicating financial stability.

Jordan’s credit rating upgrades by major agencies attest to its sound economic policies, boosting investor confidence. Strategic borrowing and fiscal reforms have positioned Jordan for sustainable economic growth and stability.

The Kingdom aims to maintain macroeconomic stability, reduce public debt, and foster inclusive growth, emphasizing job creation to combat high unemployment.

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