Egyptian consumer confidence increased 77 index-points in Q2 2013, according to findings from a Nielsen Q2 fiscal year 2013-2014 survey.
Despite approximately 85% of respondents believing they were in a recession, Egypt ranked in the top 10 of the 58 countries surveyed, in terms of confidence that their country would rebound within the next 12 months.
According to the survey, the three top major concerns remain the economy, political stability and job security.
12% expressed concern about crime and 7% about terrorism.
“The field dates for this survey showed that both supporters of the former regime and those against it were expecting the economy to pick up within a year,” said Managing Director of Nielsen Egypt Tamer El-Araby.
He continued: “The anti-regime believed that the economy’s restoration could result from the 30 June demonstrations, and as the regime supporters were confident that the government would drive the economy upwards.”
Discretionary spending intentions for out-of-home entertainment increased 8% among respondents in the second quarter.
Around 41% of respondents saved their spare cash, showing an increase of four percentage points. 28% said they had no spare cash, which marks a decrease from 31 % reported in Q1 2013 and Q2 2012.
“With the prolonged transitional phase and the on-going unrest, Egyptians are seeking outings and shopping to enjoy their time, they are shifting to a more relaxed phase,” commented El-Araby.
Economic expert Magdy Toulba attributed the increase in the consumer confidence to the new interim cabinet which includes “strong figures” he said.
“I believe that the consumer confidence slid in Q1 due to the vagueness of the political scene during the regime of deposed Mohamed Morsi, which raised concerns of people,” said Toulba.
Echoing the survey’s results, Toulba expected the economy to rebound within 12 months, adding: “our economy was at the bottom, we passed through the worst ever.”