Blessing in disguise

According to President of the Foodstuff Traders Association Khalil Haj Tawfiq, demand for foodstuff during this year's Ramadan has gone down by 22-30 per cent across the board.

Other indicators from other sources also corroborate this finding and extend the decline on demand to other business activities. This should not come as a big surprise, not only because the holy month of fasting is often associated with a slow down in business activities in general, but also because people are getting more conscious of the impact of a slowing economy on their pockets.

The culture of buying more than a family’s needs has come under pressure lately and not only because of Ramadan. The anxieties associated with the imminent adoption of a new Income Tax Law must have taken a toll on business confidence in general.

Traders and food outlets confirm the dramatic drop in demand for foodstuff and other items and commodities, even though prices this year are lower than last year by a considerable margin.

These new indicators could be viewed though as a positive development. Gone are the days for wasteful spending and consumers are getting to be more discriminating on a scale and manner, similar to what is evident in more advanced countries, including those blessed with stronger economies.

The slowing of demand for foodstuff and other items could also be a blessing in disguise, since it may suggest that consumers are moving in the direction of saving.

Saving money on non-essentials in particular would mean that more funds can be made available for economic projects. Rationalisation of spending has been a dream of economists and a constant goal of Jordan. The new indicators could mean just that.