Good times, bad times

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No wonder: the value of many currencies has dropped drastically in the last few months. That is poison to exporters, since foreign investors tend to quickly back off when currencies are in free fall, thereby driving the downward spiral even further down. It definitely appears to have hit the eastern European countries hardest. They had experienced a substantial economic upturn over recent years, but this has now come to an abrupt end. The effect is noticeable in the pet sector among others. When compared with previous years, sales of pet products in countries like Russia, Latvia and Romania have gone down by 20, 30 or even more per cent. This has had a powerful effect on foreign importers as well, leaving their current balance sheets looking much the worse for wear. The many and varied consequences of the financial crisis will still be felt in years to come in eastern Europe. The sales potential for foreign products in these markets can be expected to decline considerably to start with, as a result of the weakness of their currencies. Local products will once more gain in significance in Russia, Poland, the Czech Republic and other countries. Companies that have production facilities in central and eastern Europe should also remain relatively unscathed by the credit crunch. By contrast, all those needing to import goods into these countries will be faced with a problem. Countries that have been knocked especially hard by the economic downturn are currently also suffering from the declining purchasing power of their citizens. No longer is there so much loose cash around for spending on pet products when disposable income has fallen drastically or unemployment has gone up steeply. This is especially noticeable in both the USA and Spain, and in certain Asian companies as well. Nevertheless, there is no reason for resignation. So far the pet supplies sector has got off relatively lightly in terms of the financial crisis: the motor industry and the travel sector have been hit far harder. As we know, sometimes the global economy is on an upswing and sometimes a downswing. Which means that this year's severe global financial crisis will at some stage be followed by better times once again. Just think about it: the pet supplies business is and will continue to be a relatively crisis-proof sector. Even when the economy is doing badly, pet owners are still devoted to their four-legged friends, to their birds and fish. Since…