Economy in Focus #2 – Generation X worst off
In the 2nd edition of Economy in Focus, Intrum’s Senior Economist, Anna Zabrodzka-Averianov, explores the record-low consumer confidence in Europe, the impact of rising inflation, and how Generation X is most affected. Published in December 2022.
Generation X faces the greatest financial strain
While 6 in 10 Europeans feel worse off than a year ago, Generation X, aged 45-54, has been hit the hardest by inflation. Younger generations, such as Gen Z, are less affected as they are yet to take on significant financial responsibilities.
Grocery and energy prices dominate concerns
Rising grocery and energy costs are the top concerns for 80% of European consumers, especially among older and lower-income households who spend a greater share of their income on these essentials.
Energy costs fuel inflation
The energy crisis is driving inflation in Europe, with energy prices increasing by 42% annually. Government interventions are widespread but need to be carefully targeted to avoid exacerbating inflationary pressures.
Comment from Intrum's Senior Economist:
"Consumer confidence has plummeted as inflation continues to erode purchasing power. Generation X is particularly affected, as rising costs impact their financial stability."
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