Since the 2008 financial crisis, the middle-class in many developed markets has struggled to return to pre-crisis economic levels. Many middle-class consumers are simply unprepared for the economic crisis that the coronavirus will bring. In fact, the overall savings ratio in developed markets is relatively low, at just around 11% of household disposable income, compared to nearly 30% in emerging and developing Asia.
Lower incomes and economic uncertainty will turn middle-class consumers away from the accumulation of material things. They will also be more cautious and selective in their purchasing decisions, and practice thriftier and even more self-sufficient lifestyles.
The article is property of Euromonitor International, a market research provider, and can be consulted in full at: https://blog.euromonitor.com/podcast/how-is-coronavirus-impacting-the-developed-middle-class/?utm_campaign=SC_20_08_13_Coronavirus_Consumer_Finance&utm_medium=Email&utm_source=4_Report_Promo&mkt_tok=eyJpIjoiWlRGaFlqWm1OelUxTURrNSIsInQiOiJ4d2hCSlFaclUwUFd5bHQ2cmFrVktza2VlbVBKUlB5aHVqYktrQkkyUXZLeVhHNGJDWWFDS21ac3dmYzZESGNIRzNzdDdGaVA2U2d3Njd0a1hsT3dob1A4TlRwaGt5cEhtMnVCTUsrZWQ5MVR1YmlCNUpycGh3ZkVcL2hySG8rR0kifQ%3D%3D