www.business-review.eu Business Review | May 2020
30 LOCAL ECONOMY
Taking a look at the post-pandemic economy The lockdown caused by the COVID-19 pandemic sent the global economy into crisis. In the second quarter of the year, most of the world’s economies will lose between 10 and 25 percent of GDP, including Romania’s. The recovery should start in the second half of 2020, but it will take many years to get back to pre-crisis levels. By Aurel Constantin
Only a third of consumers are willing to spend the same amounts they did before the crisis or more
T
he first edition of the EY Future
ers in the “Hibernate and spend” segment
to two new segments: “Remain frugal” and
Consumer Index, a survey tracking
(11.4 percent) are spending more across the
“Cautiously extravagant.” The post-COVID-19
consumer sentiment across the US,
board. As we can see, only a third of consum-
consumer segments, detailed in the Index,
Canada, UK, France, and Germany, revealed
ers are willing to spend the same amounts
are summarised as: “Keep cutting” (13.1
how the lockdown-related changes in people’s
they did before the crisis or more. This means
percent), “Stay frugal” (21.7 percent), “Get to
behaviour are influencing the economy. Four
that two thirds will spend less, and that
normal” (31.4 percent), “Cautiously extrava-
major behaviour trends emerged during the
translates into declining sales for many seg-
gant” (24.7 percent), and “Back with a bang”
COVID-19 pandemic: “Cut deep,” “Stay calm,
ments of the economy. “42 percent of those
(9.1 percent).
carry on,” “Save and stockpile,” and “Hiber-
interviewed expect their shopping behaviour
nate and spend.”
to permanently change, a third are willing to
54 percent of consumers would make their
pay more for local products, a quarter would
personal data more available if it helped to
segment (27.3 percent) are spending less
do so trusted brands and a quarter for ethical
monitor and track an infection cluster. It also
across all expense categories as the pandemic
products,” says Cristian Carstoiu, Business
revealed that health care providers are regard-
impacts employment; those representing the
Advisory Services Partner at EY Romania.
ed as the most authoritative organisations,
Consumers that fall into the “Cut deep”
“Stay calm, carry on” category are continuing
The four segments identified by EY could
The EY Future Consumer Index found that
with 47 percent of consumers indicating that
to spend as normal (26.2 percent). Most con-
morph into five very different ones as the cri-
they trust them completely, compared to gov-
sumers (35.1 percent) represent the “Save and
sis abates. For example, the Index currently
ernments (28 percent), brands (17 percent),
stockpile” segment, indicating that they feel
suggests that over time, most consumers in
and media companies (16 percent).
pessimistic about the future, while consum-
the “Save and stockpile” segment will migrate
Consumers could view time, talent, and
