CYPRIOTS ARE among the most optimistic people in the world about the consequences of the worldwide economic crisis, according to a survey by global market research company Synovate and the University of Nicosia.
The survey covered more than 17,300 people across 26 countries and found that in some nations, including Cyprus, a surprising number of people have a positive outlook on the economy, while those in leading economies are gloomier about their prospects.
In Cyprus, 17 per cent of those surveyed – followed by 13 per cent in both Brazil and India and 12 per cent in Denmark – went as far as to say they believed their economies were strong.
What’s more, 24 per cent of Cypriot respondents said they had nothing to fear from the global crisis. By contrast, an overall 31 per cent of global respondents felt that ‘the economy is going downhill and will get worse before it gets better’, led by France, the UK and the US.
The most popular perception across all 26 countries canvassed was that ‘the economy is in a bad patch but will get better quickly’, selected by an overall 39 per cent of respondents.
This optimistic outlook was led by 75 per cent of Indonesians, 59 per cent of people from the United Arab Emirates and 58 per cent of Malaysians, as well as 46 per cent of Cypriots.
This high optimism partly reflects the May 2009 timing of the survey, when the crisis had not fully hit the Cyprus economy and the government was still sending optimistic messages, says Marios Christou, head of the Centre for Economic Studies at the University of Nicosia.
Christou further stressed that ‘following previous crises, in most cases the Cyprus economy was not significantly affected and even emerged stronger – another factor behind the optimism of some respondents’.
Christou also pointed out cautionary signals from the survey. “This might be the first time since 1974 that such a high proportion (33%) of those surveyed expressed the fear that they or their main household earner would lose their job.
“This indicates high job insecurity in Cyprus, which, of course, is in line with the global results of the survey.
“It is also interesting to see that almost half (42%) of those who were saving money cannot do so anymore, which reflects the high cost of living in Cyprus and the relatively low salaries, especially for employees in the private sector.”
Nonetheless, some habits certainly die hard among Cypriot consumers, with 50 per cent spending the same on luxury goods as they did per cent months ago, compared to 34 per cent globally.
And only 39 per cent have cut their overall spending over that period, as opposed to 53 per cent across all countries in the survey. On the other hand, 38 per cent of Cypriots were doing more comparison shopping than before but 11 per cent admitted to never comparing prices – more than twice the global average.
The survey was conducted in May 2009 across 26 markets with over 17,300 respondents, including 300 in Cyprus surveyed by the University of Nicosia. The other markets covered were Argentina, Australia, Belgium, Brazil, Bulgaria, Canada, Denmark, France, Germany, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Netherlands, New Zealand, Serbia, South Africa, Spain, Taiwan, Turkey, the UAE, the UK and the USA. For more information on this study, visit: www.synovate.com/insights/infact.
WHERE WE’RE CUTTING DOWN
WHAT WAS the first thing given up by those in Cyprus who reduced their spending? Holiday travel and eating out topped the list at 21 per cent. Interestingly, Cypriots can’t help indulging in some day-to-day pleasures, particularly coffee/tea and cigarettes, on which only nine per cent and 12 per cent of users, respectively, spent less.
By contrast, alcohol and soft drinks were among the least resilient daily consumption items, with 18 per cent of drinkers in each category spending less. The biggest drop in consumables was for cosmetics and beauty products, with 22 per cent of users reducing their spending.
Even in areas where Cypriot consumers planned to reduce spending, brand loyalty remains strong, Christou pointed out.
“Across all categories, brand loyalty in Cyprus was higher than the global average. That’s because to a large extent, branding in Cyprus is a form of social status,” he said.
“The typical Cypriot consumer will buy less of something in order to keep buying his or her favourite brand. To continue buying luxury items, they might dip into their savings or even borrow money, especially if the crisis is perceived to be short-term. This is good news for brands in the Cyprus market.”
Curiosities from around the world
* A cup of tea remains the answer to everything in Britain: 77 per cent of people there are spending the same as always on hot beverages.
* People in Turkey are the most likely to have made spending cuts in the last six months, with 77 per cent saying they had done so.
* Over a third of Americans (34%) are stockpiling food ‘just in case’. This is also happening in South Africa (36%) and Argentina (29%).
