The economic consequences of the coronavirus crisis affect almost 40% of the French population, particularly financially fragile households. Shopkeepers, craftsmen, the unemployed, blue-collar workers and low-income earners are likely to be the hardest hit.
An optimistic 2019
Purchasing power has remained stable over the past 12 months, or even increased. According to the CSA/Cofidis Barometer, 45% of French people consider their purchasing power to be stable, an increase of 12 points in one year. Those who feel it has decreased are mainly young people and the over-65s. As for bank overdrafts, their frequency has fallen slightly, to 40% compared with 45% in 2019.
40% of French people affected by the economic consequences of the health crisis
The health crisis has put a stop to the optimistic trend observed over the last 12 months. Indeed, 4 out of 10 French people indicate that their personal financial situation has worsened. Shopkeepers, craftsmen and company directors (74%), the unemployed (59%) and blue-collar workers (56%) are the most affected. On the other hand, 26% of the most financially vulnerable French people say that the government's proposed assistance has had a positive effect on their budget.
The consequences of the health crisis on French people's budgets are already being felt. The Barometer reveals that the level of bank overdraft has risen sharply: +34 euros over one year, to 375 euros (versus 341 euros in 2019). This upward trend is more pronounced among students (+131 euros over the last 12 months, to 218 euros), and among those in the CSP- bracket (+41 euros, to 359 euros). Requests for deferment or adjustment of consumer credit have multiplied in recent months. 14% of the most vulnerable households have made use of this facility, which is double the French average.
The families surveyed estimate that they lack 449 euros each month to live comfortably, 22 euros more than in 2019.
Some French people are postponing their plans
Despite the difficult economic climate, 60% of those surveyed plan to spend money in the coming year. Despite being less affected by the crisis, the highest income groups prefer to cancel or postpone their projects. As a result, personal savings are up 9 points. By contrast, consumer credit is down 10 points. Thanks to money invested during confinement or payment in several instalments without charge, respondents plan to finance a trip (59%), renovate their home (47%), buy household appliances (41%) or furniture (34%).
Pending a definitive end to the Covid-19 crisis, French morale is not at its best. Half of them are worried about their professional situation, and fear a worsening of their purchasing power.