Jordan: Economic slowdown leading to a drop on food spending
Jawabreh told The Jordan Times that the local food market has been hit by the decline in the purchasing power of consumers, which he said has prompted retailers to launch unprecedented discount offers on most commodities.
The FTA president blamed the drop in consumer spending on the government’s decision to lift fuel subsidies late last year, which forced households to rearrange their budgets.
“Although food remains a number one priority for consumers, the rise in fuel prices made them spend less on food items,” he said.
Jawabreh noted that large supermarkets have been offering discounts on a “large number of food items”, adding that these offers are good for consumers but not for merchants who are losing revenues.
He indicated that strategic reserves of basic food items are enough for 60 days, a period he described as not long enough because merchants and authorities prefer that commodities cover the country’s needs for at least 90 days.
- Fully booked for post-sanctions business: Iran's five star hotels are buzzing with Western business delegations
- The source of all brain drain: Lebanon's university graduates downbeat about their future prospects
- Is Erdogan's party waging a 'holy war' against the free market economy?
- Costs and benefits: the tough economics of hosting the World Cup
- Mind the gap: descripancy between income and social development persists in the Middle East