The conflict in Israel-Gaza, alongside the renewed violence in the region, particularly escalating tensions between Israel and Iran in mid-June 2025, led to flight suspensions in Jordan and is likely to further complicate the country’s fragile economic recovery, to dampen investor and tourist confidence, and to contribute to an increasingly uncertain outlook. Social tensions in Jordan have remained low but could rise if the ongoing conflicts were to further escalate. Furthermore, climate-change risks exacerbating Jordan’s already dire water scarcity could hurt growth and add further pressures on government finances.
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