Economic Panic and Public Perception During Geopolitical Conflict: Evidence from Survey-Based Composite Index Analysis

Atul Goyal

doi:10.69968/ijisem.2026v5i2427-430

Authors

Atul Goyal Assistant Professor, Department of Economics, Bundelkhand University, Jhansi, UP

DOI:

https://doi.org/10.69968/ijisem.2026v5i2427-430

Keywords:

Economic Panic, Inflation Perception, Composite Index, Behavioral Economics, Geopolitical Conflict, Survey Analysis

Abstract

Geopolitical conflicts greatly impact global economic systems, creating significant challenges characterized by inflationary shocks, fluctuations in energy prices, and instability within financial markets. This study delves into public perceptions of economic distress following a significant geopolitical conflict, utilizing primary survey data collected from 217 respondents. To quantify economic anxiety and its multidimensional aspects, we construct an innovative tool called the Panic Index. This index assesses various elements of economic unease, including the severity of inflation, the depreciation of currency, levels of financial stress, and overall macroeconomic outlook.

To analyze the data, we employ a range of statistical techniques, including descriptive analysis and independent sample t-tests, to explore variations in economic perceptions across different demographic groups. The results reveal a moderate but consistent level of economic concern among participants, indicating that individuals are quite aware of the economic challenges stemming from the ongoing geopolitical conflict.

Interestingly, our analysis shows that there are no statistically significant differences in economic anxiety levels when comparing responses based on gender

These findings contribute valuable insights to the field of behavioral economics by emphasizing the critical role that individual perception plays in shaping economic responses during periods of crisis. Additionally, they offer actionable guidance for policymakers looking to understand and address public sentiments regarding economic stability in the wake of geopolitical upheaval.

Ultimately, the study underscores the necessity for effective communication and targeted interventions aimed at mitigating economic anxiety among the populace during turbulent times.

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