The Financial Impact Of COVID-19 On Italian Consumers

In response to COVID-19, Italian consumers are cutting down spending on nonessentials and relying on their savings and credit cards; over half are saving more as a result of the pandemic, and some are planning ahead by optimizing their investments and insurance coverage. Ninety-five percent of Italian adults who have been permanently laid off are anxious about their financial situation, a much higher number than in other countries, which shows the trajectory that other countries are likely to follow as economic situation deteriorates as a result of lockdowns. Younger adults and people with children are the two other groups who are most concerned about their finances. Italian customers have seen a reduction in their earnings due to COVID-19, forcing them to reduce consumption, postpone big purchases, and delay important life events — all of which will impact banks’ profits going forward.