Despite signs of economic resilience among consumers in Germany between 2021 and 2024, certain groups remain financially vulnerable, according to a new study by the Ifo Institute, N26 digital bank, and the Technical University of Munich. The research, based on anonymised banking data, reveals uneven impacts of recent crises such as the war in Ukraine and high inflation.
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Young adults emerged relatively well-positioned, with increased incomes and rising expenditure. However, older individuals and those with high rental costs have struggled to recover, as their incomes have not kept pace with rising living expenses. 'Despite a recovery, older people and consumers with high rent burdens in particular are still under financial pressure,' said Sebastian Wichert of the LMU-ifo Economics & Business Data Centre.
The study also highlights a growing number of consumers experiencing temporary negative account balances, suggesting weakened financial flexibility. Researchers anticipate muted private consumption and a renewed focus on saving.
To support economic stability, the report suggests encouraging savings schemes, keeping rent increases moderate, and expanding access to affordable loans, especially for low-income households. These measures, it argues, will be key to strengthening financial resilience in times of continued uncertainty.
Source: www.moebelmarkt.de