Jordan Situation Report | May 2025

Overview

The suspension of aid through the United States Agency for International Development (USAID) has triggered widespread disruption across Jordan’s aid-dependent economy, hitting the country’s most vulnerable populations, including refugees and people with disabilities, hardest. As the third-largest recipient of USAID funds, Jordan is facing serious repercussions following the U.S. government’s order to shut down the agency, which has forced critical development and humanitarian programs into uncertainty. The impact has been immediate and severe, with an estimated 35,000 Jordanian and American workers losing their jobs across public institutions, private sector organizations, contractors, and partner agencies engaged in U.S.-funded projects, according to early figures reported by the NGO sector in Jordan. Essential services once supported by USAID have been reduced or discontinued altogether. These include healthcare, education, water and infrastructure development, protection services for survivors of gender-based violence, and vital assistance for Syrian and Palestinian refugees.1 The recent funding cuts in Jordan have put critical health services for refugees at risk. Around 43,000 refugees may lose access to primary health care and cash assistance for medical needs. These cuts also threaten essential maternal health services for approximately 335,000 women of reproductive age, raising serious concerns about access to safe and timely care.2

Business Monitor International (BMI) projects that Jordan’s economic growth for 2025 will decrease from 2.1% to 1.6%, reflecting the impact of newly imposed U.S. tariffs and the country’s reliance on American markets. This adjustment signals a more pronounced deceleration in real GDP than previously expected, falling from 2.5% in 2024, as trade restrictions are set to weaken investment levels and reduce demand across key sectors, likely contributing to rising unemployment. The combination of U.S. economic deceleration and new tariffs is expected to reduce Jordanian exports, driving the current account deficit up from 5.9% of GDP in 2024 to 7.1% in 2025.

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