The COVID-19 pandemic has dealt the global economy a harsh blow and the Saudi Arabian economy has been no exception, despite its strength. However, the pandemic has created a prudent spending culture in Saudi society in which the national economy is the long-term beneficiary, according to one expert.
Dr. Abdullah Al-Maghlouth, of the Saudi Economic Association, told Arab News that we would notice tremendous social changes as a result of the pandemic, the most important of which would be in the consumer behavior.
“The economic recession has already begun and that will influence consumers’ behavior, which, in return, will strongly affect all economic variables,” he said.
Everyone is aware of the remarkable shift that occurred in consumer behavior as much of the population entered the digital market, with health care companies, restaurants and nutrition companies having the highest sale rates.
Al-Maghlouth said: “People have turned into wise buyers who focus on health-related goods. Moreover, the Saudi markets will witness a significant drop in the prices, and people will find that many goods and services are falling in price.”
He believed the new consumer behavior would reduce individuals’ spending in an attempt to increase savings. After the crisis ends, the market will begin to send reassuring indicators that are hoped to bring people back to the market. “Prosperity will then return and people can enjoy a decent and stable life.”