More than half (56%) of respondents in the EY Consumer Index Romania 2024 survey are concerned about the rising costs of electricity, gas and water, access to quality healthcare (54%) and the possibility to find a job (52%) being other important concerns.
Moreover, 48% of respondents are worried about rising taxes and the cost of food, and 40% think they will not be able to buy a house in the near future.
Most young people aged 18-30 are most worried that they will not be able to buy a home without financial help. On the other hand, 81% of young people aged 18-24 are extremely concerned about the outcome of political elections and 83% are worried about the rising cost of living. As for the national economy, 68% of respondents aged 51 to 65 are worried about its future.
"In 2024, Romanians' state of pessimism has worsened, both in terms of their personal financial situation and the national economy. While in 2023, the main concern was about rising prices and the cost of living due to inflation, in 2024, 70% of respondents are concerned about the results of political elections, which are considered to be decisive for Romania's economy. Other major concerns include the rising cost of living (68%) and the state of the economy (61%)," Georgiana Iancu, partner, coordinator of the Indirect Taxes practice, and leader of the Retail and Consumer Products sector at EY Romania, was quoted as saying in a press release sent to AGERPRES on Friday.
According to the cited source, this year Romanians have been more careful not to waste food, with the percentage of those who adopt this behavior increasing significantly from 80% last year to 89%. Also, 61% of respondents don't feel the need to keep up with the latest fashion trends and 58% prefer to repair things rather than replace them. As far as clothes are concerned, 39% of respondents feel that clothes are not very important in their buying decisions.
When it comes to cutting spending, fashion accessories (68%), consumer electronics (59%) and toys or gadgets (58%) are the main categories targeted. In contrast, clothing, footwear and beauty and cosmetics are less targeted for savings.
While respondents aged under 30 want to reduce their purchases to save money, those over 51 tend to buy less, rationalizing their consumption needs.
Compared to last year, more respondents intend to adopt a more cautious attitude to consumption and reduce spending. However, in some areas, consumer estimates show that this will not be possible due to anticipated cost increases, particularly in energy (57%), fresh food (38%) and clothing and footwear (23%). In addition, respondents expect to spend more on holidays and vacations (41%), recreation (27%) and gifts or charitable donations (26%).
Cutting back on expenses is aimed at categories such as furniture or household appliances (43%), snacks (41%), restaurant food (39%), luxury items (39%) or sports equipment (32%).
Nearly two thirds of respondents (64%) have noticed that some brands have reduced pack sizes while keeping prices constant or even increasing them. This phenomenon, known as shrinkflation, is influencing consumer perceptions. Against this backdrop, interest in shopping events such as Black Friday and Valentine's Day has risen to 60% this year, up from 51% last year. This suggests a greater desire to take advantage of discounts and saving opportunities.
Online shopping has gained in popularity, with 50% of respondents favoring online-only shopping during the last major discount event, up 4% from the previous year. At the last major shopping event, the majority of respondents (32%) said they spent about the same as in previous years; however, 27% reported spending more and 24% spent less
For the holiday season in December and January, 39% of respondents expect to spend about the same as last year and 37% expect to spend more.
"Romanians in general show a high level of pessimism, a trait highlighted in numerous social and economic surveys. This is the first time in the last three years that EY Romania's annual survey clearly reveals the chapters in which respondents ticked, in significant proportions, the "worried" option," the press release further shows.
Thus, two thirds (67%) of the respondents fear that the economic situation will get worse, which represents an increase of 7% compared to the previous year. In terms of jobs, 60% of respondents expect the situation to remain unchanged in 2024, suggesting low expectations for an improving labor market. More than half of respondents (59%) say they are extremely worried about external conflicts and wars.
"Expectations of tax increases, rising inflation, a budget deficit that exceeds the limits accepted by the European Union and the constant rise in prices of basic products contribute to an increasingly worrying climate. All these aspects, together with the specific tension of an election year, come to explain the pessimism felt by Romanians," explained Georgiana Iancu.
The EY Consumer Index 2024 was conducted between November and December 2024. Of the total respondents, 42% were aged between 18 and 40, 43% between 41 and 65, of which almost 70% were women, the rest men. The majority of respondents were from urban areas (91%), with 59% from Bucharest, 9% from Cluj, 6% from Ilfov, 5% from Iasi and 4% from Timis. Most of them have university and post-graduate studies - 98%, the rest have secondary and post-secondary studies. In terms of occupation, 87% are employed, 8% are self-employed and 3% are retired, and in terms of income, one third of the participants have monthly incomes between 5,000 - 9,999 RON, 20% between 10,000 - 15,000 RON, and 27% have incomes above 15,000 RON.