Economist: Markets Enter Post-Holiday Slowdown Amid Declining Purchasing Power And Rising Living Costs

(MENAFN- Amman Net) Economist Munir Diya said that Jordanian households face increasing financial pressures during the periods leading up to and during holidays, due to the accumulation of obligations and expenses associated with social and religious occasions, in addition to early salary disbursements that typically trigger higher spending patterns.

In remarks to the“Talat Sabah” program, he explained that rising prices of essential goods, including food items, meat, and vegetables, along with higher costs of fuel, transportation, and electricity, have intensified living pressures on citizens, particularly amid the current economic and geopolitical conditions.

He noted that a large proportion of citizens rely on loans and bank obligations, with monthly deductions reaching around 50 to 60 percent of income to service repayments, significantly limiting their ability to meet other household needs.

Diya pointed out that the period following salary payments and extending until the next pay cycle places additional strain on families, pushing them to focus primarily on essential expenditures such as food, utility bills, healthcare, and education.

He added that consumer behavior has become more cautious compared to previous years, as a result of weakened purchasing power and stagnant incomes, a trend that is reflected across various economic sectors.

According to him, markets typically experience a post-holiday slowdown in demand for non-essential goods, prompting merchants to offer discounts and promotional campaigns in an effort to stimulate sales and maintain cash flow for operational commitments.

He concluded that the current phase represents a seasonal economic slowdown, which is expected to be followed by a gradual improvement in activity with the arrival of the summer season and increased commercial movement.

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