Panamanians are optimistic

PANAMA. While the rest of the world reflects pessimism due to the financial crisis and recession, Panamanians outlook for the future remains stable, because of political promises says a study released by The Marketing Group.

Financed by the Chamber of Commerce, Industries and Agriculture, the study showed that in January that the Consumer Confidence Index stood at 114.5 bucking a regional and international trend.

The bench mark is 100 and although the confidence level had fallen from the December level of 117.4, “The simple reality is that the average Panamanian is stable”, said Domingo Obarrio president of The Marketing Group, which conducted the study that measures consumers perception of the market. When the CCI is above 100 points, it indicates consumer confidence. While there was a 2.9 points decrease from the December level the result is superior to that of other countries in the region with much larger economies.

Obarrio believes this sense of optimism arises because the country is in the midst of an an election campaign.

In the polarized electoral fight, the followers of each presidential candidate : “ Are deluded by the promise of a better future for them and the possibility of getting a job as a gear in the government 'machine'”, he says.

The political activities are also to thank for temporarily invigorating the economy with provisional jobs that inject capital.

Obarrio makes it clear that when the electoral festivities are over it is highly likely that the perception of the future will registers a change.

Consumer expectations about their home economic situation rose 2.4 points from 118.4 in December to 120.8 in January. They believe that the cost of living could decrease but at the same time are cautious about falling into debt over more expensive goods.

Another peculiar aspect of the report is that the population is willing to save, a CCI of 121 much superior to that of the European Union, Brazil and Colombia. But when it comes to employment, there is a marked decrease, with consumers belief in a falling of of jobs reflected by a 8.1 point decrease from the 105.7 registered in December to 97.6.

According to the CCI, Panamanian consumers felt that 2008 was negatively affected their finances, due to the increased cost of fuel and electricity. In conclusion the survey that included 1000 people of reflecting the general population, has yet to register the worlds economy crisis.