The COVID-19 pandemic has taken the country by storm, halting 2020 economic plans, and forcing the government to focus on the imminent health and economic threats posed by the pandemic. Uncertainty regarding the country’s economic future has led to a 3-point decrease in the Jordanian Consumer Sentiment Index (JCSI) for this quarter.
As a result of the government’s early adoption of strict measures to prevent the spread of coronavirus coupled with measures that alleviated immediate financial pressures posed by the lockdown, Jordanian’s trust in the government reached an all-time high with almost 1 in 2 expressing high confidence towards government actions.
Nonetheless, Despite the immediate relief measures, the strict lockdown has brought the country’s aid-dependent economy to a standstill causing Jordanians to share a bleak outlook regarding the future. Many continue to voice their concerns about their deteriorating ability to spend, with around 8 in 10 feeling less comfortable making household purchases and 84% feeling less capable of committing to major purchases at this point in time. This led to inflation and high cost of living, in addition to unemployment being the top concerns among Jordanians.
Regarding their perception of COVID-19 and its impact on the country, the vast majority of Jordanians were extremely optimistic during March, believing that the impact of the of the crisis will be short-lived. Nonetheless, as the situation progressed, people became less likely to believe that the virus poses a big health risk on the country, but instead became more anxious about the impact duration and the country’s readiness to deal with the virus’ economic repercussions.
Ipsos’ JCSI quarterly result is driven by the aggregation of four weighted sub-indices relating to current personal financial conditions, economic expectations, investment climate, and employment confidence, all of which contribute to JCSI being a key predictor of general consumption & investment trends in the Jordanian market.