Bundesbank: Crown crisis hits many people’s incomes | Free Press

Frankfurt / Main (dpa) – According to a study by the Bundesbank, the crisis in the crown has put great pressure on the wallets of many people in Germany.

More than 40 percent suffered a loss of income or other losses due to the pandemic or measures to combat it, according to a survey. Around 2,000 people participated after the first shutdown in May. Consequently, 46% employees were much more affected by financial consequences than inactive people (28%), which mainly includes retirees and retirees.

In the initial phase of the Crown crisis, respondents expected their monthly net income to fall by an average of 64 euros over the next twelve months, according to the Bundesbank. However, the differences were large: 40 percent assumed that their income would fall more than 500 euros a month, 8 percent did not expect any change. A good half (52 percent) expected an increase of around 290 euros, especially white-collar workers and retirees who hope to keep their jobs or continue to receive pensions.

“People with the lowest incomes expected the greatest loss of income,” the authors said. Presumably they are often employed in unsafe jobs or those that have been particularly affected by the crisis. Women are also particularly affected.

As a good sign for the economy, experts rated the fact that the majority of respondents planned to spend as much money over the next year as they did in the previous twelve months. In addition, the willingness to use an unexpected lump sum payment for consumption is high: when asked what they would do with a given monthly family income, the responses indicated that half would go to consumption. The value is similarly high as in the 2017 studies. This “propensity to spend” has hardly changed in the Crown crisis, the Bundesbank in Frankfurt concluded.

He was confident that the billions in federal government aid, including aid for the self-employed and businesses, as well as a temporary VAT cut, will make a difference. “In view of the effectiveness of the stimulus package approved by the federal government, this is an encouraging sign.”

However, the pandemic did not leave consumption without a trace. The mood for luxury shopping after the shutdown waned: According to surveys from May 2019, fewer people now said they wanted to spend more money. At the same time, those who save the most want to do so in many places, according to the Bundesbank. “The effect is most pronounced in households that have suffered income losses due to the crown crisis or expect future income losses.”

According to the Bundesbank, travel and holidays, as well as leisure activities, were on the cut list. People wanted to save less strictly on clothing and footwear, as well as on mobility.