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65% of consumers have negative view of national economy — Ipsos

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A general photo of stores in downtown Amman. 53.1 percent of Jordanians said that the current status of the economy is weak, and 28.7 percent viewed it as neither strong nor weak. (File photo: Ameer Khalifeh/Jordan News)
AMMAN — A quarterly index published by Ipsos suggested that “confidence in the future of the economy has dropped by 6.6 percentage points during Q4” along with a drop in the confidence in job security and future investments.اضافة اعلان

Musa Al-Saket, a board member of the Amman Chamber of Industry, said that the reason for the confidence drop is due to inflation rates, unemployment, and budget deficit. “Before COVID-19, we had an inflation rate of 0.8 percent that has now risen to 2.4 percent. The unemployment rate was 19 percent whereas now it stands at 25 percent. The budget deficit was JD700 million in 2018 and this year it is JD1.75 billion.”

Ipsos’ Jordan Consumer Sentiment Index showed that Jordanian people’s top three concerns are unemployment, high cost of living, as well as poverty and social inequality.

“Things are not going to get better unless we implement drastic changes to the whole economy in terms of macro and microeconomics,” said Saket.

According to Ipsos’ quarterly index, 65 percent of people described the current economic situation as negative, and 61.5 percent said their personal financial situation was fragile.

Former minister of state for economic affairs Yusuf Mansur believes that “the decrease in trust is due to certain decisions that the government announced then withdrew. Unfortunately, there have been unclear and under-revised decisions, as well.”

When asked about the decrease in unemployment rate by 7 percentage points, Mansur responded that “this improvement is expected; it is an adjustment after the difficult period, but unemployment rates are still high. The number of companies exiting the market is still increasing too. The banks were not lending money to small businesses, rather lending money to large businesses that didn’t need money.”

53.1 percent of Jordanians said that the current status of the economy is weak, and 28.7 percent viewed it as neither strong nor weak.

However, with COVID-19 infection rates at their highest in the Kingdom with the new Omicron variant, experts predict it the pandemic would cause further economic damage.

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