This article is a review of the studies:
Hosen, M.Z. Effect of Ramadan on purchasing behavior: a panel data analysis. Int Rev Econ 71, 325–341 (2024). https://doi.org/10.1007/s12232-024-00445-y
Obaideen, K., Alameddine, M., Hanach, N., Abdelrahim, D.N., Faris, M.E. (2025). On the Contribution of Ramadan Fasting Month to the United Nations’ Sustainable Development Goals (SDGs). In: Faris, M.E., BaHammam, A.S., Hassanein, M.M., Hamdy, O., Chtourou, H. (eds) Health and Medical Aspects of Ramadan Intermittent Fasting. Springer, Singapore. https://doi.org/10.1007/978-981-96-6783-3_19
Ramadan is the ninth month of the Islamic lunar calendar. In 2026, it begins on February 19 and will last for 29 days, until March 19. During this period, Muslims observe a fast, abstaining from food and drink from dawn until sunset.
In religious and cultural contexts, Ramadan is regarded as a time of self-discipline, spiritual purification, and reassessment of life priorities. However, in the modern world, it also represents a significant socio-economic phenomenon that influences the daily behavior of millions of people. At the individual level, eating patterns, charitable activity, and forms of social interaction change. Collectively, these shifts generate noticeable macroeconomic effects: from spikes in food demand to increased charitable giving and social solidarity.
An econometric study by Md Zobraj Hosen, published in The International Review of Economics, offers a rare causal analysis of Ramadan’s impact on consumer behavior. The author uses actual transaction data and the difference-in-differences method, widely applied in empirical economics to estimate causal effects.
This method compares behavioral changes in a “treated” group with those in a “control” group before and after an event. In this case, Muslims and non-Muslims are compared before and during Ramadan, allowing the researcher to isolate the effect of the month itself from inflation, seasonality, and other factors. Data from Bangladesh show that Muslim household expenditures increase by approximately 40% during Ramadan. Additional growth is observed before Eid al-Fitr, when households receive bonus payments and prepare for the celebration.
At first glance, this appears paradoxical: a month associated with fasting and restraint is accompanied by increased spending. However, the explanation lies in social and cultural dynamics. Daytime fasting is offset by evening meals (iftar), and practices of hospitality and charitable giving intensify. Ramadan is a time of community and generosity, not only individual asceticism.
From an economic perspective, this represents a positive demand shock. When a large share of the population simultaneously increases spending on food and related goods, market equilibrium shifts, and prices may rise even in the absence of collusion or shortages. Thus, price increases during Ramadan are often a natural market response to collective changes in consumer behavior.
A broader perspective is offered by researchers led by MoezAlIslam E. Faris, who examine Ramadan through the lens of the United Nations Sustainable Development Goals (SDGs). Within this framework, Ramadan is viewed not merely as an economic factor, but as a social institution capable of supporting development.
Poverty and hunger reduction. Zakat (obligatory almsgiving) and voluntary donations facilitate the redistribution of resources to those in need. Ramadan strengthens social solidarity and functions as an informal mechanism of social protection.
Health and well-being. Fasting may increase dietary awareness and encourage the abandonment of harmful habits. Spiritual practices and a sense of community positively affect psychological well-being.
Education and social capital. During Ramadan, religious and moral education intensifies, lectures and community events are organized, and social ties are strengthened.
Environmental potential. The normative ideal of Ramadan promotes moderation and the avoidance of wastefulness. When interpreted accordingly, this can contribute to reducing food waste and fostering more responsible consumption.
A comparison of empirical and conceptual studies reveals an important duality. On the one hand, Ramadan normatively promotes moderation. On the other hand, in practice it is often accompanied by increased consumption.
In reality, Ramadan can reinforce both tendencies simultaneously:
• more charitable giving, but also higher festive spending;
• greater solidarity, but also increased food waste.
This is not a contradiction, but rather a reflection of the complexity of social behavior, where religious norms interact with income levels, cultural traditions, and market conditions.
Research shows that Ramadan is not only a spiritual period, but also a predictable seasonal driver of economic activity. Its effects recur annually and are therefore manageable.
The study by Md Zobraj Hosen demonstrates a measurable increase in household expenditures during Ramadan. This suggests that regulators and businesses should treat Ramadan as a recurring demand peak, comparable to major holiday seasons.
By contrast, the approach of MoezAlIslam E. Faris and co-authors highlights how the behavioral norms of Ramadan can function as a social resource, strengthening charitable giving, solidarity, and practices of moderation.
Thus, Ramadan simultaneously creates pressure on markets and opens a window of opportunity for social policy.
Practical Guidelines:
Supply management instead of price controls. Since price increases are largely demand-driven, priority should be given to logistics, import planning, and inventory management. This helps reduce inflationary pressure without distorting the market.
Integrating charity into social policy. Zakat and voluntary donations already perform a redistributive function. Governments can amplify their impact through transparent platforms and coordination mechanisms.
Behavioral campaigns. Information programs promoting responsible consumption and food waste reduction can be effectively embedded within the values of Ramadan, increasing the likelihood of public engagement.
Ramadan can be viewed as a predictable socio-economic cycle that can be managed through policy and market instruments. Taking its behavioral specificity into account makes it possible to contain price risks, support vulnerable groups, and strengthen positive social effects simultaneously. The key question, therefore, is no longer whether Ramadan influences the economy, but whether governments and markets are able to adapt to this influence in a systematic and timely manner.
* AI tools were used to create the image: Nano Banana (Gemini).
