Romanian Consumers Among Most Affected By Crisis In 2010 - GfK

GfK studied private consumption in Europe in 2010 and its outlook for 2011, and found that it increased by 0.5% last year. The study says Germans are by far the most optimistic Europeans when it comes to consumption, while Romanians and Greeks are having the hardest time.

In addition, both countries' governments are under great international pressure to reduce their budget deficits, receiving financial aid from the International Monetary Fund, the European Central Bank and the European Union. This has led to big cuts in social services, higher taxes, poor expectations regarding income and a low buying inclination, says GfK's research.

Andi Dumitrescu, GfK Romania general manager, says 2011 will also be a difficult year for local consumers, with low income and greater than average pessimism regarding their economic future.

On the other hand, Germany posted growth on both the food and non-food segments. Germans also spent more on clothing and tended to choose high quality products. GfK says these segments are expected to increase in 2011.

In Poland, consumer buying inclination was higher than in the rest of Europe, as the GDP grew 3.5% last year.

In France, high expenses with social security and short working week (35 hours) have taken their toll on the economy's competitiveness. French consumers are afraid their living standards will depreciate significantly, reflected by their low expectations for income in 2010 and low buying inclination, says the study.

The same can be said of British consumers. The public sector is the largest employer in the UK, meaning the government's austerity measures are especially important. Furthermore, frozen salaries and high inflation compared to Germany have lowered the Britons' living standards, according the study.

Italian and Spanish consumers have also had low expectations of their economic future.

Still, the research expects private household expenses to increase by 1.5% in 2011, contributing significantly to economic growth.

GfK's Euro Climate study is carried out each month on the 27 European Union member states on a total sample of 39,900 people, and tracks the population's expectations regarding indicators such as household income, general economic conditions or inflation, as well as buying or saving inclination.

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