Over the weekend I watched a very interesting report on Spanish TV about Spain’s post-pandemic spending habits.
It appears, and I presume it may well be the same in many other countries, that a section of the population saved quite a sizable amount of money during the lockdown as a result of the restrictions.
For example, when the bars and restaurants first reopened we only had a limited amount of hours to eat and drink and according to the report, while a large percentage of the population has been able to save money over the past 18 months and is in a better financial position than pre-covid, there are many others who are far worse off.
Apart from being unable to go out and spend, many employees on furlough, were able to save, while others simply lost their jobs or their businesses and now face a momentous uphill struggle to recover.
And, what is more, those who have emerged from the pandemic with more money in their pockets, are more thrifty than they were two years ago and consumer spending has fallen, which is one of the reasons inflation has risen to just over five percent.
Wavering household consumption and rising energy prices have contributed to the rise in inflation and a delay in the use of the recovery fund of 800,000 million euros from the EU is slowing Spain’s recovery, in fact Spain, despite all its efforts, is lagging behind the rest of Europe and this is not helping the poor.