CAIRO: Egypt scored the highest rate of increase worldwide in the level of consumer confidence for the first quarter of 2010.
Consumer confidence rose 24 points to reach 95, compared to a global average of 92 points, according to the Nielsen Global Consumer Confidence Index, which was released June 7.
Hany Mwafy, managing director North Africa of the Nielsen Company, a global information and measurement company, said, “The Egyptian economy demonstrated remarkable resilience during the global economic downturn, with GDP growth reaching 4.9 percent in early 2010, despite its reliance on global trade and the tourism industry —areas most affected by the global recession.”
According to Basel Adel, retail solutions manager North Africa of Nielsen, Egyptians came out third in the Middle East region for consumers’ ability to save earnings.
He indicated that this translates into Egyptians buying more durable goods, such as electronics as well as spending more of their disposable income on leisure and travel.
This outcome is in spite of Egyptians feeling the pressure of the recession, the results of the survey indicated, but they also see economic recovery in sight.
Topping Egyptian consumers’ concerns was the balance between work and their private lives, followed by the overall state of the economy, job prospects and job security, their health and last, the political situation of their country.
Asked what services or products they would first forgo if the economy were to slowdown, Egyptians listed fast food followed by leisure and entertainment, then travel and clothing.
Globally, the consumer confidence is on the upswing, the survey concluded.
Compared to six months ago, consumer confidence has rise six points, “and only two points short of the 94 point index mark in quarter three of 2007, just prior to the decline into the world recession,” a Nielsen statement read.
In a similar vein, “consumer confidence rose in 41 of the 55 countries surveyed,” according to Nielsen.
Highest on the scale was India and Indonesia, with 127 and 116 points respectively, while lowest was Lithuania, with just 46 points. Due to its recent financial turmoil, Greece recorded the steepest decline, 15 points, placing it with 57 points overall.
To Hany Mwafy, “Quarter one of this year presented the first global show of force towards economic recovery. For the first time in two years…consumer data provides evidence that economic prospects are improving.”
The number of consumers worldwide that believe that the economy is still in a recession fell 19 points to 58 percent, compared to 77 percent a year ago.
The report indicated that consumer confidence has risen largely due to perceived confidence in employment, which has also steadily increased over the past six months.
Forty-three percent of global consumers described their job prospects as either good or excellent compared to 35 percent just six months before, the survey revealed.
In contrast to the optimism espoused by the survey, pessimism reigned in Western Europe and the United States.
Nielsen’s statement said that the US is “likely to see a period of slow demand growth in conjunction with a largely jobless recovery…and in the case of Europe, added uncertainty from the ongoing sovereign-debt crisis” will protract any economic recovery.
The Nielsen Global Consumer Confidence Index is conducted on a bi-annual basis, tracking consumer confidence in the job market, status of their personal finances and spending intentions among more than 27,000 internet users in 55 countries.
This latest index was conducted between March 8 and March 26, 2010.
