India is'Relatively Resilient' with stable consumer confidence: MasterCard report

According to the New MasterCard Report which investigates the potential resilience of markets in a slower growing economy, India ranked an overall fourth as a market whose consumer confidence is less affected by changes in its merchandise exports. Thus, India's consumer confidence is'neutral' with respect to changes in merchandise export growth. The report titled "Consumer Confidence in a Weak Global Economy is based on a correlation analysis of the MasterCard Worldwide Index of Consumer Confidence (MWICC).

Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide, and Co-author of the report, informs, "The strong growth in global demand that we saw during the decade of 2000-2010 was unique in many ways, underpinned by an unprecedented increase in global liquidity which provided a tremendous boost to the export-oriented economies in Asia Pacific and Middle East. But growth in global demand will be a lot weaker than before. Putting it bluntly, a repeat performance is highly unlikely.”

He further stated, "For many markets in the Asia Pacific and the Middle East, especially the export-oriented ones, the outlook of a slower growing global economy will mean weaker demand for exports. Thus, their ability to leverage domestic demand, especially private consumption, will be critical in supporting stronger economic growth. The extent to which they may succeed will in turn depend on how resilient consumer confidence is in these markets.” Though the report found Hong Kong, Indonesia, Thailand, Philippines, India and China to be well positioned with the strongest possibility to control private domestic consumption to support economic growth.