ESCWA Publication: E/ESCWA/CL3.SEP/2025/Technical note.2
Country: Hashemite Kingdom of Jordan
Publication Type: Information material
Cluster: Shared Economic Prosperity
Focus Area: Debt and fiscal policy, Macroeconomics
Initiatives: Debt Optimization to Enhance Fiscal Space, Social Expenditure Monitor for Arab States, Public finance and inclusive fiscal policy
SDGs: Goal 8: Decent Work and Economic Growth
Keywords: Debt management, Econometric models, Economic forecasts, Economic policy, Fiscal policy, Government spending policy, Jordan, Macroeconomics, National budgets, Public debt, Public expenditures, Simulation methods, Social policy, Technical cooperation
Enhancing fiscal space and sustainability for Jordan: insights from the Macro-fiscal Modelling and Forecasting tool
February 2026
This technical note presents key findings from the Macro-Fiscal Modelling and Forecasting (MFMF) tool applied to Jordan. It analyses three policy-relevant scenarios – debt stabilization, improved fiscal space, and investment in social expenditures – to demonstrate the model’s features and capabilities for macro-fiscal policy assessment.
The analysis indicates that debt stabilization, combined with improvements in fiscal efficiency and social investments, generates sustained gains in economic output and private consumption compared with a business-as-usual scenario. It also shows that such a policy mix can expand fiscal space and support higher government expenditures relative to the baseline scenario, contributing to improved fiscal sustainability, gross domestic product growth, and the overall well-being of the population in line with Jordan’s Economic Modernisation Vision.
Related content
Debt and fiscal policy, Macroeconomics
This technical note presents key findings from the Macro-Fiscal Modelling and Forecasting (MFMF) tool applied to Jordan. It analyses three policy-relevant scenarios – debt stabilization, improved fiscal space, and investment in social expenditures – to demonstrate the model’s features and capabilities for macro-fiscal policy assessment.
The analysis indicates that debt stabilization, combined with improvements in fiscal efficiency and social investments, generates sustained gains in economic output and private consumption compared with a business-as-usual scenario. It also shows that such a policy mix can expand fiscal space and support higher government expenditures relative to the baseline scenario, contributing to improved fiscal sustainability, gross domestic product growth, and the overall well-being of the population in line with Jordan’s Economic Modernisation Vision.
