2023-08-15 20:54:23
Almost half of the population feels impoverished and declares itself concerned about the impact on its economy of the rise of the interest rates (69%) and by the persistence of inflation (55%). These are some of the conclusions of the IESE professor’s book Jose Luis Nueno ‘Everything is terrible, but I’m fine (the Spanish in the cost of living crisis)’, published by the AECOC association and based on 19 million purchase acts from 250,000 consumers from a Fintonic and Intent HQ database . The study concludes that with rising interest rates and inflationary pressures “a curious duality is produced between personal optimism and social pessimism.” People tend to value their own circumstances better than the general ones, but the truth is that Spanish society is clearly impoverished at the rate of rising interest rates and price hikes.
Nueno points out that the majority of Spaniards are spending more than you earn. For this reason, he draws a future scenario that is somewhat darker than the present. In his opinion “social polarization is accentuated, in which both brands and luxury goods and the cheapest stores grow. The data is clear in this regard: inflation last year was 20% higher for citizens who belong to the lowest income quintile (one fifth) (less than 9,215.6 euros) than for those in the highest quintile.Therefore, the first and second lowest quintiles are cutting their spending levels, while those belonging to the lowest quintiles 3, 4 and 5 are increasing it.” For entrepreneurs, it will be useful to know that it is estimated that this year in Europe spending on luxury items will increase by 12% (including spending from returning Chinese and Japanese tourists). Companies whose products do not target the wealthiest or lowest income will have a harder time.
Families with less income
The rise in interest rates has a direct effect in Europe and Spain. The experts warn of something obvious but that no one seems to see as a direct consequence in their person or family. The rise in interest rates associated with the freezing of wages in many companies and sectors with difficulties increases the part of the population with much less income than the average. At the same time, the spending capacity of the wealthiest due to the tendency to moderate the price of products and services of companies in difficulties. The axiom that if the dishes in your kitchen are piled up and you don’t have a dozen of the same chairs, you are from the lower class is no more than a joke. But the answer hurts most. If no one has been paid to help with housework for a long time or the bank account has dropped to levels not known in previous years, you are probably in the quintiles of the least wealthy. One is poor despite not knowing or acknowledging it, although the consolation persists that others are worse off.
#Spaniards #feel #poorer