At the end of 2020, the Jordanian consumer sentiment index was up by almost five points, approaching its levels at the beginning of the pandemic. The uptake in the consumer sentiment index was primarily driven by increased positivity towards the future of the economy, with the Economic Expectations Index experiencing a 7.5-point increase when compared to last quarter.

These subsiding negative sentiments towards a more stable future have been in part driven by several governmental relief measures that aim to preserve the livelihoods of those most affected by the lockdown measures imposed. Increasing the minimum wage, the extension of the NAF support program, supporting and extending the SSC relief packages and the alleviation of permitted salary reduction under Defense Order No. 6, have all contributed to reassuring Jordanians of an upcoming partial recovery and better purchase power. Noteworthy, these improved future sentiments were significantly higher among public sector employees versus the private sector.

However, as consumers continue to grapple with the aftermath of the crisis on their livelihoods, unemployment ranks first on consumers list of worries. In fact, in comparison to other indices, the employment confidence index remained stagnant, placing Jordan amongst the bottom three countries when it comes to this index.

Increased optimism witnessed this quarter has not been unique to Jordan, as similar sentiments have been mirrored globally. In fact, Q4 2020 was marked with increased optimism across 14 out of 24 countries included in Ipsos' global survey. Positive sentiments have been largely fueled by the global vaccine roll out, delivering hope of breaking the surge in the number of cases and the accompanying restrictions that are putting a strain the global economy. In Jordan specifically, while the perceived threat of the virus is still at its highest levels, optimism regarding the approaching end of the crisis has intensified, with 72 percent of Jordanians believing that the threat posed by the virus will soon be over.

Despite Jordanians’ conviction of the imminent end of the crisis, the threat imposed by the virus is far from over. Heightened risks associated with the spread of new strain of the virus coupled with the recent reopening of some sectors in the economy, places Jordan in a critical position. The need to monitor the public’s sentiment towards the economy and actual economy performance is extremely critical at this stage as governments around the world continue to struggle to strike the right balance.

“The reception of the new year is a hopeful period globally! In Jordan, it held more positivity to the devastated consumers grappling for hope, with news of approaching vaccine roll-outs, relaxed lockdown measures and more support from the government to vulnerable segments, commented Saif Nimry, Managing Director of IPSOS Jordan & Iraq.

“The government needs to pay special attention to how the private sectors and small business owners are coping and ensure that enough support is extended to them as they are the largest employers in the Jordanian economy," he added.

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 and investment trends in the Jordanian market.