Economy dampens Eid El Adha for Jordan

Celebrations during Eid Al Adha lost some of their sheen for Jordanians due to the economics problems gripping the nation. However, people were still keen to indulge in Eid traditions such as buying new clothes for their children, buying traditional cookies receiving guests. Jordanian spending habits were still on the downturn, as was evident in the empty streets of the capital and other cities. Demand on new clothes and confectionery also fell, while malls equipped with every facility imaginable are still awaiting decent footfalls.         Household spending in the kingdom was also low this Adha Feast season as expenditure on food and clothing was higher in order to secure the needs of the occasion, owing to heavy expenditure at the beginning of the academic year and Eid Al Fitr spending.         According to Fahd Tawila, member of the commercial chamber in Jordan and representative of the clothes department, the sector witnessed increasing activity and mobility a few days before Eid Al Adha though the tough economic conditions dominant on the country, while the second place was taken by food products. This was due to a process of reorganisation of priorities made by the consumers who were compelled to give clothing the first place because of Eid.          He added that suppliers managed to provide low-price clothes which low-income people could afford. Discounts also contributed in increasing the demand on clothes. Sawsan Housein, a house wife with four children, said: "I feel very happy when we buy the prey and distribute on our relatives, friends, neighbors and poor people," reflecting the tradition of slaughtering sheep for Eid food. The cattle market did boom few days before Eid Al Adha, but slumped again after the festival, according to experts. Ismail Darwish, one of the traders in the cattle market, said: "Demand on cattle this Adha Feast is poor compared to previous years. This is probably due to the increase in prices in addition to cattle exports and the high supply of imported meat in the Jordanian market which contributed to the slowdown in cattle market." Darwish also expected that: "total spending on meat in Jordan is expected to reach 24 million Dinars with an average of 200 Dinar per animal." Wael Shokeirat, general manager of Al Watanya company for food security based in Jordan, said: "The volume of consumption of meat is estimated by 120,000animals pan-nation including imported sheep, goats, cows and camels." Shokeirat added: "The company had recently imported 30,000 sheep from Georgia and Romania which were supplied to the markets of civil and military institutions." He also stated that the price average of the imported sheep was 165 Dinar per head in addition to selling the Ethiopian sheep for 115 Dinar per head. Regarding the increase in prices of Odhia meat, Basem El Jahayna, a Jordanian citizen, said: "Prices are extremely high as a kilogram of live sacrificial meat is sold for 4.5 or 5 Dinars, which an average Jordanian citizen can’t afford as the maximum acceptable price is between 3.5 and 4 Dinars.”     Recent developments in Syria, Jordan’s nearest neighbour, have also contributed to the sombre mood his year. Syrian uprisings are regarded as a domestic affair for the Jordanians as they share strong ties on social, economic and geographical levels. Most Jordanians have relatives and households in the Syria, particularly those inhabitants of Arbid and Ramtha in northern Jordan.     Economic conditions in Jordan are in turmoil as a result of the Arab Spring revolutions, affecting the economy on all levels as foreign investors fled. An enormous increase in public spending to provide relief for the sudden increase in prices of energy and the subsiding basic goods also contributed to the crisis. It is also known that half of the funds used in offsetting Jordan’s budget deficit were provided by foreign financial assistance.       Early expectations pegged economic growth at 3 per cent in 2011, versus higher levels reached throughout the last ten years with an average of 7 per cent.  However, some commentators unofficially announced that it will be challenging for the Jordanian economy to reach the expected growth, as Jordan is still struggling to recover from the effects of the global financial crisis of 2008 / 2009. Alaa Deraniya, head of the Bankers Association in the Amman, said that the Jordanian exchange market saw a boom due to increase in money transfer by expatriates, especially over the last two weeks in addition to the notable increase in vegetables and fruits exports, the boom in therapeutic tourism and increased foreign investment. He also stressed the importance of reinforcement of relationships between the banking sectors in Jordan and Kuwait, which is determined to positively affect both economies.