Egyptian consumer confidence jumped five point last quarter despite more than 85 percent of the population believing that the country is currently in the midst of a recession and is wracked by political uncertainty, Nielsen Holdings revealed in its latest consumer confidence. It’s believed that the consumer confidence jump came due to the country moving ahead with its political transition, despite recent news that the parliament had been dissolved and a contentious presidential race. Currently it remains uncertain how the recent political events will effect consumer confidence and spending in Egypt, since the stock market dipped significantly on news of a protracted election fight. “This is not yet a rising tide raising all ships since the nation is suffering from unemployment and harsh social conditions,” said RamMohan Rao, Managing Director Nielsen Egypt. Egyptians are currently facing multiple economic crises that run in hand in hand with the political uncertainties that they face.
Egypt currently is atop a list of 10 countries whose populations note that the political situation is dire. Despite the grim news, Egyptians are optimistic, the confidence reported, they will pass this difficult period in the transition within the next year. More than half of consumers, approximately 55 percent, think their country will be out of the recession in the next 12 months. Similarly, Egyptians looking for work seem to be more confident in the prospect of finding employment, according to the report. Unemployed Egyptians beliefs that they could find work within the next 12 months eked out a modest three percent.
“Egyptians trust in their abilities and resources and this is how they trust their country can come out of this recession,” said Ram. “They also believe that with the fall of the regime and the eradication of corruption the economy will improve as well as their condition. Some experts say Egypt could be one of the world’s top 10 economies in a generation. That’s a goal worth working toward.” The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, tracks consumer confidence, major concerns and spending intentions among more than 28,000 Internet consumers in 56 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.