Domestic Society
21:24 5 July 2022
Post by: WBJ

67% of Poles expect to increase spending in coming months

67% of Poles expect to increase spending in coming months
Source: Photo by Sharon McCutcheon on Unsplash

More than half of Poles (57 percent) believe that the current economic situation has already harmed their savings, and 67 percent of respondents expect an increase in their household spending in the coming months, according to the report "More Modestly and Less, or the Life of the Polish Consumer," prepared by Strategy& Poland, part of the PwC Group.

"Compared to indications in 2020 (the first year of COVID-19), we see a significant change in consumer predictions, with sentiment in 2022 not differing by place of residence (rural/urban). Significantly, the 65+ age group is more likely to anticipate greater spending – as much as 80% of indications," the release reads.

"Inflationary pressures are mounting, and the intensity of the further fight against high prices with the standard tools at the central bank's disposal can only increase. These methods – mainly interest rate hikes – are intended to discourage consumers from increasing their purchases and encourage them to save, thereby reducing the money supply in the market. The prospect? Demand will be curtailed, borrowers will feel the interest rates painfully in their installments, and companies will slow down their investment processes. Already the macro situation is forcing consumers to rationalize spending and reduce purchases," Krzysztof Badowski, managing partner of Strategy& Poland, commented.

In his opinion, there are also apparent symptoms of "downtrading," i.e., consumers choosing cheaper "substitutes" for previously preferred products. As the survey indicates, it is difficult to expect a reversal of these trends in the coming months.

(ISBnews


poland
pwc
spending
krzysztof badowski
strategy& poland

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