Nielsen: Consumer confidence up in Egypt

Egypt gained five points on global information firm Nielsen’s fourth quarter consumer confidence index, closing 2014 with a score of 90.

Scores below 100 indicate pessimism about local job prospects, personal finances and immediate spending intentions, while scores above 100 indicate an optimistic outlook.

Global consumer confidence declined two points during the quarter to reach 96.

Nielsen’s index measures consumer perceptions around the world, although its surveys are limited to consumers with internet access, which means the pool of respondents may be younger and wealthier than the population as a whole. According to Nielsen, internet penetration in Egypt stands at 50 percent.

For the fourth quarter study, which looked at 17 countries, India showed the most positive sentiment with a score of 129, while Italy was the most negative at 45 points.

Egypt’s most recent score puts it 14 points above the same quarter last year, making Egypt one of the world’s biggest gainers in 2014.

The fourth quarter of 2013 coincided with a period of unrest in Egypt. Most of the country remained under curfew until mid-November, which suppressed economic activity, while violence in October and throughout the summer hit tourism and investment hard.

Egypt was comparatively stable in late 2014, with positive figures for GDP growth, a booming stock market, and the beginnings of a recovery for its battered tourism industry.

“Egypt’s consumer confidence score has been climbing for the last two quarters, and we see a direct correlation to the country’s economic growth during that same period,” writes Tamer al-Araby, Nielsen’s managing director for Egypt, Levant and North Africa, in the report.

“As Egypt approaches the confidence baseline score of 100, the next challenge will be to improve how people perceive their personal finances. This could lead to a point when Egyptian consumers no longer focus on immediate living requirements, but rather look forward to potential future growth,” Araby added.