This report provides insights into how the Coronavirus (COVID-19) pandemic impacts the middle class in emerging and developing countries. It will also deep dive into China, home to nearly half of the developing world’s middle class, to uncover the changes in middle class consumers’ behaviour, values and priorities as a result of the pandemic.
This report comes in PPT.
In the face of contracting economic activity and higher unemployment, middle class income and wealth are likely to decline.
The middle class in emerging and developing Asia, where the savings ratio is high, thus giving them a financial cushion, is expected to be more resilient to the economic fallout of the pandemic.
Middle class households in Latin America and Sub-Saharan Africa, generally with fewer savings and assets, will be at greater risk of falling into poverty.
More likely than lower-income groups, middle class households can afford to stockpile food and essential goods. However, rising food prices due to the COVID-19 pandemic will seriously dent middle class discretionary spending.
Transport, hotels and catering, and leisure and recreation will be the categories where middle class consumers will cut back the most, due to their reduced discretionary spending capacity and the fact that consumers do not feel safe about eating out, going on holiday, and travelling.
Economic uncertainty, job insecurity, and anxieties wrought by COVID-19 will cause middle class consumers to reassess their values and priorities as well as embrace new consumption habits.
Middle class consumers will be more likely than ever before to embrace the second-hand economy as they shift away from the accumulation of material goods. Lower disposable incomes amid an economic recession will also necessitate the need to resell their used goods for extra income.
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