Public Concerns Grow Regarding the Economy

The latest LMD/Nielsen Business Confidence Survey shows that the percentage of people concerned about the economy more than doubled in 4th quarter 2012. The proportion of people indicating that the economy was their biggest or second biggest concern increased from 22% to 46 %. This sharp deterioration in public sentiment reflects the slowing down of the economy that has taken place following the implementation of the necessary stabilization measures that were introduced a year ago to address the overheating of the economy. That overheating was due to a combination of misaligned domestic macroeconomic policies in the wake of the euphoria associated with the war victory and adverse developments in the world economy.