One year into the pandemic and Jordanians’ bleak economic outlook persists. Despite the slight uptake in positivity witnessed last quarter as a result of the government’s financial relief measures, optimism this quarter has fallen once more, with the Jordanian consumer sentiment index dropping four points almost reaching its level at the start of the pandemic.
As cases surged and the health situation deteriorated, the government was compelled to impose further restrictions including the reinstatement of the Friday lockdown, extension of curfew hours and the closing down of additional vulnerable sectors. As restrictions were re-enforced, by the end of February, people’s confidence that the virus will be short-lived dwindled, registering a 15% points drop when compared to last quarter. Furthermore, after recording a staggering high of 9.5K cases per day, it comes as no surprise that concerns about the intensity of the threat posed by the vaccine also registered an all-time high since the beginning of the pandemic, meanwhile confidence in the government’s ability to safeguard the country against the virus reached its lowest levels yet.
As Jordanians began to deal with the aftermath of the restrictions, concerns regarding high cost of living and inflation further intensified when compared to the previous quarter. In fact, this led to a 10% drop in Jordanians’ confidence when it comes to the current state of the economy as well as a significant deterioration in people’s outlook regarding the future state of the economy and their personal financial situation.
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.