According to a survey conducted by Broker Consulting, almost every second Czech agrees with the statement that the economic crisis is in full swing and will cause a sharp increase in unemployment.
However, about 30 percent of the Czech population does not perceive the situation to be so critical.
Last year, 38 percent of respondents did not know whether they expected the economic crisis to come. This year, only five percent remained undecided.
“The results show that the topic of the economic crisis associated with the coronavirus pandemic is resonating with Czech society and few have remained immune to it. The facts are that inflation reached 2.7 percent in November and unemployment climbed to 3.8 percent, the highest value since 2016. Thus, the data shows a deteriorating economic situation,” Michal Cibulka, from Broker Consulting’s financial planning methodologies, commented on the results.
For 2021, a pessimistic view slightly prevails, with 28 percent of the Czech population expecting their situation to deteriorate more or less. In contrast, 24 percent hope for at least a slight improvement.
“The good news is that 40 percent of Czechs do not expect their situation to change any more next year. But the reality will depend on how quickly we can restore the normal functioning of the economy without government subsidy programs after the introduction of vaccination. If we continue to deal with the time-limited opening and subsequent closure of the economy in 2021, it is possible that even these 40 percent of people will begin to feel a deterioration in their situation,” said Cibulka.
Almost every second Czech (48 percent) will repay their potential financial liabilities in the following year without any problems. As the data show in the year-on-year comparison, the population group has been more or less constant since 2018. However, there is a significant increase in those who are afraid of unexpected expenses next year, which they will not be able to cover from their financial reserves.
Only 3.1 percent of Czechs have significant financial savings that will help them overcome the crisis if needed. Conversely, in the case of a full-blown outbreak of the economic crisis, 49.5 percent would feel its effects more and consider individual expenditures more carefully and create reserves.