Govt’s claim of ‘Economy getting better’ has collapsed suddenly: IPSOS GCCI Survey
ISLAMABAD, Nov 24 (SABAH): A private Non-Governmental Organization IPSOS in its conclusion of the latest Global Consumer Confidence Index (GCCI) survey has said that government’s claim of ‘Economy getting better’ has collapsed suddenly, as the public sentiment about overall direction of the country has hit its ever lowest.
According to IPSOS, inflation is the most worrying issue for Pakistanis. 17% more people since September ’21 reported it to be most worrying issue for them.
The surveys says even when asked about other worrying issues; economy related concerns remain on top. Meanwhile, coronavirus as a worrying issue has gone down by 18% in the last two months.
The surveys further states that inflation and unemployment have been the most worrying issues for Pakistanis from last 2 years.
According to the survey, after seeing an all-time high in Sep’21, ‘current economic situation’ perception has hit rock bottom, with only 5% considering it as strong. Acute majority of 63% expect it to remain weak even in the next 6 months.
The surveys further states that coinciding it with December ‘19 reading, only 5% claiming personal financial situation to be strong. Two-third Pakistanis fear it stay weaker in the next six months.
The survey further states that the job security perceptions have shrunk to ever lowest 12%, halved since Sep’21.
The surveys further states that 54% Pakistanis reported witnessing themselves or people known to them personally losing their jobs in the past one year, the situation continues to prevail the same since 2020.
The survey further states that in the current situation, only 15% Pakistanis feel confident to save money and invest in their future. Sharp decrease in the last two months.
The survey says in comparison to one year ago, 9 in 10 Pakistanis are not feeling comfortable for purchasing major items like cars, homes etc.
The surveys further states that, similarly, more than 90% Pakistanis are feeling uncomfortable while purchasing other household items. Lowest percentage since start of 2021.
The surveys further states that combining all of the above; just in a two months’ time, Pakistan Consumers’ Confidence Index has gone down by 12 points. …which is the lowest among similar emerging markets
It is worth mentioning here that the IPSOS Global Consumer Confidence Index (GCCI) is a national survey of consumer attitudes on the current and future state of the local economy, personal financial situation, as well as confidence to make large investments and ability to save.
Consumer sentiment is a key predictor of purchase trends in the market. Despite it being a lagging indicator, if consumer confidence is high, people will make more purchases and the economy will expand.
Businesses and Policy Makers can monitor changes in the index to factor the data in their decision-making processes. A wave-onwave decreasing trend suggests consumers have a negative outlook on their ability to spend. Thus, manufacturers may expect consumers to avoid retail purchases, particularly items that require financing. Likewise, banks can anticipate a decrease in lending activity, mortgage applications, and credit card usage.