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Families, income is improving but not by much.  Bad savings

Families, income is improving but not by much. Bad savings

beginning pandemic Its spread has affected families’ anxiety over their income, the ability to meet their financial obligations, and the fear of not being able to maintain the standard of living they had before the virus putting everything at risk. The danger, of course, is felt more strongly by families who were already in greater difficulty.

Bank of Italy investigation

It is clear that two years after the onset of the epidemic, there is still widespread apprehension about their present and future economic capacity. After the initial strong shock, we can’t say we’re back to the starting point, but it seems that during those roughly two years since the virus spread, families have softened perceptions about the uncertainty about their income tomorrow.
This, in a nutshell, is the interpretation that can be made of the results of the six exceptional surveys conducted on families Bank of ItalyTo monitor the economic reaction of families to the spread of the virus. These sample surveys, each of which always interviewed at least 2,000 people, were published between June 2020 and November 2021 and cover the period between the end of April and the beginning of May 2020 and the end of August and early September 2021.

closing effect

In the first two months of confinement at home, closing part of factories and other economic activities, half of the families interviewed experienced a decline in income. The blow was especially hard on families whose income came from precarious work or from the daily income of the activities of the self-employed: the income of the clerks and workers fell by at least one in two cases, and that of merchants, artisans, and the self-employed. 2 times out of 3.
althoughsnooze keep payingGive them back the same amounts before the pandemic, even for 20% of retirees whose income has been halved. Most likely they were people who supplemented a relatively low annual salary with income from renting a property or with income obtained by continuing to do some work.

Gradual reopening

The gradual reopening of factories, laboratories, professional activities and measures taken by the government to support individuals and economic activities, which has already started since the end of August last year, appears to have served as a barrier to the negative effects on the income of the virus’s persistence: the second survey conducted by the Central Bank found that 68% of The total number of households has a fixed income, an increase of 20 percentage points compared to the March-April survey. On subsequent monitoring, the fluctuations around this level were a few percent.
However, the odds of an improvement in household income were always relatively modest. Even if, with the development of the epidemiological situation, there should be a narrowing of pessimism: within one year, families expect a decrease in their income compared to the level reached before the health emergency from four to one in seven .

Punishment of savings

This does not appear to have significantly improved chances of saving: the proportion of households expecting in each survey to be able to spare a few euros in the next 12 months ranged between 42 and 44 per cent; So the majority saw the possibility of zero savings or even needing to borrow to make ends meet.
In the last survey, only 3 out of 10 families announced that they had saved something; They are likely to be the highest earners, which would also justify the increase in deposits in checking accounts registered during the pandemic.
However, we must not forget that the virus fell into a situation that for many families was already more than precarious: half of them with disposable incomes struggled to reach the end of the month.

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