How did International Monetary Fund loan conditions contribute to protests in Jordan in 2018?

In 2016, Jordan entered into a structural economic reform program guided by the International Monetary Fund (IMF) aimed at reducing public debt and stimulating growth. This program necessitated the implementation of various austerity measures that placed significant financial pressure on the population, particularly as the cost of living and unemployment rates remained high.12

In 2018, these measures intensified, leading to widespread public unrest. The government increased sales tax on numerous goods and cut subsidies for food staples. Tensions peaked in the late spring when lawmakers debated a bill to raise income tax by 5 percent, triggering the largest protests in Jordan since 2011.12

The scale of the demonstrations forced King Abdullah to replace his prime minister, and the incoming administration subsequently rescinded the proposed tax bill. Although an amended version was passed later that year to exempt low-income households, the economic strain and the impact of these IMF-backed reforms continued to be a source of significant public dissatisfaction.12