German Consumers Worry About Their Future
Almost half of Germans fear their consumer situation will worsen in the next decade, a new survey suggests. According to a Forsa survey commissioned by the Federation of German Consumer Organizations (vzbv), 48% of adults anticipate a deterioration of their consumer situation.
The survey, conducted between November 6 and 8, involved a representative sample of 1003 adults. The vzbv, which commissioned the survey in conjunction with German Consumer Day 2023, made it available to the German Press Agency.
At the Consumer Day, experts will discuss crucial consumer issues, such as pensions, mobility, and artificial intelligence.
The survey revealed that energy supply is the topic requiring the most immediate action from politicians, as perceived by 38% of respondents. Pensions came in second, with 23% considering it the most pressing issue for consumers. Ramona Pop, a vzbv board member, saw it as an alarm signal that nearly half of Germans are worried about the future. "In uncertain times, consumers need clarity and unity rather than conflict," she said.
Why are German consumers so concerned about their future? The following factors contribute to their woes:
- Economic challenges: Germany's GDP has contracted for two consecutive years, and consumer spending has declined in critical sectors, despite income increases. High inflation is eroding purchasing power.
- Job security concerns: Mass layoffs from major companies like Volkswagen and Bosch have heightened job fears, and unemployment rates remain high.
- Geopolitical uncertainty: Competition with China and political instability are affecting exports and fueling a cautious financial stance among households.
- Infrastructure and public services: Infrastructure issues, from broken roads to failing schools, are making life more difficult for many Germans.
- Social and political divisions: A widening social divide and the perception of different realities among voters are exacerbating the situation.
Politicians have responded to these challenges in various ways, but whether their efforts are effective is a matter of debate:
- Collective bargaining agreements: While wage agreements in key industries have increased disposable incomes, they have not stimulated a widespread consumer recovery.
- Economic policy direction: The new federal government is expected to address economic policy, but uncertainty surrounding this direction is a significant concern.
- Online media regulation: The Digital Services Act aims to regulate online media services to protect consumer interests, but managing disinformation, hate speech, and messenger services remains challenging.
- Political reforms: A call for pragmatic solutions and swift cooperation to address the backlog of problems is echoing throughout the political landscape. Politicians are urged to clearly name problems and propose concrete solutions.
However, a recent rheingold election study indicates that voters are disappointed with the existing political landscape and lack confidence in politicians' ability to effectively resolve the country's problems. The study highlights a sense of hopelessness among voters regarding potential coalitions and the absence of convincing visions from candidates.
