India’s economic confidence dropped further by 3 points to 65 per cent in the month of January, as compared to the previous month, making India the (joint) fifth most economically confident country along with Canada, according to the global economic report by Ipsos, a leading global market research company.
Almost half of Indian citizens (47 per cent) believe their local economy which impacts their personal finance is good and 50 per cent people expect that the economy in their local area will be stronger in the next six months.
“The Indian economy is facing a series of interconnected crises as indicated by a sharp decline in economic growth due to tight monetary policy, falling domestic and foreign investment, a depreciating currency, large trade and current accounts deficits, huge stock market losses and near double-digit inflation,” said Mick Gordon, Managing Director of Ipsos in India.
“Moreover, Eurozone crisis, slow global economic recovery and volatility of the international commodity prices, particularly fuel, has also further adversely affected the Indian economy, which reflects in the sentiments expressed by Indians in the poll,” he added.
However, India and China continue to demonstrate comparatively strong national economic confidence, with expectations and assessments across all measures well above Asia Pacific averages once again. Though Chinese assessments of their national economy were slightly below those of India (65 per cent - 3 points) and Australia (70 per cent - +2 points), citizens were far more secure in the present state of the national economy than respondents in Indonesia (45 per cent - steady), South Korea, (17 per cent - down 4) and Japan (8 per cent and steady).
Meanwhile, a gloomy cloud continues to hover over Japan and South Korea this month, with both nations ranking near the bottom of the list on current national, regional, and future economic assessment predictions.
Polling this wave includes results from Hong Kong. It ranks middle of the pack on national (50 per cent and local (33 per cent assessments but near the bottom on future assessments of local economic conditions (14 per cent and ranks considerably lower than Mainland China on all three measures.
The report, titled ‘Ipsos Global @dvisory: The Economic Pulse of the World’ is based on 18,768 recent online interviews in 24 countries around the world; and examines citizens’ assessment of the current state of their country’s economy for a total global perspective. More than 1,000 Indian citizens were interviewed for the study.
A break in the clouds
National economic assessments are up on the global aggregate level and in every region. While the one-point shift represents a continuation of the up one point, down one point pattern for the global aggregate, this is the first time since April 2010 that all geographic regions show an improvement.
The Middle East and Africa is the geographic region with the highest aggregate assessment (+2 to 61 per cent), followed by Latin America (+1 to 47 per cent), North America (+1 to 43 per cent), Asia Pacific (+1 to 43 per cent) and Europe (+2 to 25 per cent).
Europe, which consistently weighs down the global average, has not seen such an improvement in its assessment since February 2011. In fact, all European countries except Sweden (-2 to 72 per cent) show an improvement this wave.