In the face of ongoing inflation and economical uncertainty, more and more Poles decide to tighten their belt. According to the latest survey conducted by the Shopfully platform, the results of which she learned as the first “Rzeczpospolita”, it is clear that as many as 80% of respondents declare their willingness to reduce consumer spending. Only 19% of respondents do not intend to do so, giving the second highest percent compared to another European countries.
What countries are more inexpensive than Poland?
The EU average speaks for itself – 23% of Europeans do not intend to reduce spending, but there are large differences between countries. The most resistant to belt tightening are Austrians – 32% of them don't think about saving. In Germany it is 28%in Bulgaria, for example, only 10%in Italy, 17%.
Electronics and furniture – the largest savings reserves
According to data from the origin text, savings related to the acquisition of electronic equipment are most popular – 37.2% of subjects declares to reduce expenditure in this category. The next place is furniture (36.6%) and clothing (35%). Building materials are little crucial to the budget (34.2%), while pharmaceuticals are least affected by a simplification in expenditure – only 10.7% the respondents declare their limitation.
Robert Run, Shopfully expert, commenting on this data, explains:
"This comes from a combination of respective factors, specified as the advanced unit price of electronic products. In conditions of economical uncertainty or inflationary pressure, consumers put off purchases that are not urgently needed."
He besides added:
"Electronics are not products bought regularly – unlike food or cosmetics. Phones, laptops or refrigerators are bought erstwhile all fewer years. At the time of the request to reduce expenditure, consumers are beginning to avoid replacing equipment 'just in case' if it inactive works."
Effects on the economy – little consumption, little growth?
In the context of this trend, the reflection of the Rzeczpospolita diary becomes peculiarly important, which underlines that less than 1 in 5 Polish respondents anticipate to improve purchasing power and increase spending. This could have serious consequences for the full economy due to the fact that Consumer request is 1 of the main components of GDP growth in Poland.
A simplification in expenditure means a possible slowdown in economical development, which can affect both the labour marketplace and private investment. In this context, monitoring of consumer trends by government institutions and central banks is crucial.
Are there legal precedents for austerity in the crisis?
Although the name of the court or tribunal is not straight mentioned in the material under review, it is worth mentioning that in the case of deep economical recession, the general courts and the Court of Justice of the European Union have repeatedly examined the impact of fiscal and monetary policy on the financial situation of citizens. For example, judgments on the liability of the State for price stableness and the availability of essential goods that affect the sense of financial safety of the public.
Summary
Strength 80% of Poles plan to reduce expenditure, which shows large caution in the approach to home budget. The leaders in the savings list are purchases of costly everyday items specified as RTV/AGD equipment and furniture. This trend can have far-reaching consequences not only for the trade sector but besides for the full economy. Economists inform that without a better financial position and a real increase in purchasing power, consumers will proceed to choose a saving strategy, which could affect the pace of economical growth.
Continued here:
As many as 80 percent of Poles plan to reduce spending. What do they save the most on?
