Published: 2021-08-24 17:08
Last Updated: 2024-02-22 05:36
Tuesday, a study conducted by Ipsos’ Jordanian consumer sentiment index showed that five out of 10 Jordanians stopped following the government’s daily coronavirus announcement, while six out of 10 people believe there will not be another wave of COVID-19 in light of the current vaccination efforts.
Additionally, according to Ipsos, Jordanians are now six percent more confident about the current state of the economy, and around two out of five believe that their future financial situation will be better in the coming six months.
Here is the text of the study conducted by Ipsos:
As COVID-19 cases dropped in the second quarter of 2021, Ipsos’ Jordanian consumers’ sentiment index increased by 4.5 points, approaching its highest level since the beginning of the pandemic. The uptake in the consumer sentiment index has been driven by increased positivity across its four sub-indices, namely the personal financial situation, economic expectations, investment climate, and employment confidence.
These subsiding negative sentiments towards a better financial situation have been in part driven by the governmental plan to reopen the closed sectors, dubbed “safe summer”, that aimed to push for economic recovery during the decline of COVID cases in the second quarter of the year across the Kingdom. In fact, around 3 in 5 Jordanians have fully approved of the government’s direction, claiming it was moving in the right direction with its plan to lift restrictions in the summer. As the government’s plan has allowed people to move around more freely, businesses were able to open up and benefit from the strong tailwinds of increased consumer spending. This accommodated for an almost six percent rise in consumers’ positivity towards the current state of the economy.
Positive sentiments have also been mirrored globally, particularly due to vaccine rollouts and governmental plans for economic recovery. As such, 13 out of 24 countries included in Ipsos’ global survey have witnessed increased optimism this quarter. In Jordan specifically, the government has vaccinated around 30 precent of the population, according to Reuters. This showcases that Jordanians are starting to recognize the importance of vaccines and the role vaccination plays in economic recovery.
While Jordanians have become more optimistic about their financial conditions, 60 percent have still ranked unemployment as their top concern. In fact, in comparison to other indices, the employment confidence index has seen the lowest increase, placing Jordan amongst the bottom four countries when it comes to this index.
However, the current impact of rising covid cases and the threat imposed by the virus are resurfacing, as the spread of the new Delta strain heightens. With around two-thirds of the country remaining unvaccinated, the rebound in positive sentiments could thus be reversed in the months ahead. Renewed restrictions along with the closing of some sectors, like travel and tourism, are also possible. With that in mind, the need to monitor the public’s sentiment towards the economy and actual economic performance is extremely critical at this stage as governments around the world continue to struggle to strike the right balance.
“The expectations of the global economy to recover by about 6% during 2021 may collide with new obstacles in the case that the vaccine and public safety measures are left on the sidelines. And this is what we saw happening in several countries that have recently reinforced lockdowns and curfews.” Commented Saif Nimry; Managing Director of Ipsos Jordan & Iraq. “We are still far from reaching herd immunity in Jordan, and recent easing of restrictions shouldn’t make us forget what Jordanians have suffered during the past 18 months! Jordanians must realize the impact their individual compliance has on society. Easing restrictions should actually encourage more commitment to safety measures & prudence in accepting the vaccine.” 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.