Latvian residents plan to spend a little more than half (53%) of their monthly income on summer holidays. In addition, more than a tenth of the population (12%) plans to increase spending this summer compared to last year, while 48% will spend the same as last summer, according to an annual survey by Ferratum Group.
The share of the population that plans to spend more than 1000 EUR this summer holiday has grown the fastest – from 21% last year to 28% this year. Of these, 18% of respondents will spend between 1000 and 2000 EUR for summer activities (14% a year ago), but 6% of the population will spend more than 2000 EUR (4% a year ago) for this purpose.
40% of respondents plan to reduce spending on summer activities. Up to 400 EUR will be spent on holidays by 42% of the population (48% last year), but from 400 to 1000 EUR – a third (30%) of respondents (31% a year ago).
In the summer months of this year, respondents plan to spend the most on seasonal clothing and fashion for themselves and their families (53%), home improvement (49%), food (45%), as well as financing the needs of children (30%) and gardening or handicrafts ( 30%). Every third respondent (33%) plans to spend most of their summer holidays traveling in Latvia or abroad.
It is interesting that Latvia is in the third place among the countries of the Ferratum Group after the summer holidays in the amount of planned spending from the total household income. We see that, after more than a year, living with various restrictions to limit the spread of the pandemic, people long not only for summer vacation, but also want to return to their normal rhythm of life. Increasing population activity – both social and economic – will allow the national economy to recover even faster, ”explains the head of the Ferratum Group representative office in Latvia. Artis Bērziņš.
For more than half (68%) of the respondents, the salary has remained unchanged during the last year, however, for a third (32%) the income of the population has decreased, citing the reduction of the salary (14%), job loss (10%) or location. idle (8%).
The majority of the population plans to finance their summer expenses using credit cards or other types of loans (62%), while almost a quarter (38%) of the respondents will use their own free financial resources. This trend has remained the same as last year, but the most significant change is compared to the pre-pandemic period. This year, compared to 2019, the number of respondents who will use their savings to finance summer activities has decreased by 15%.
Par Ferratum Vasaras barometer
Since 2014, the Ferratum Group has been asking customers to tell them about their spending habits. The survey is conducted twice a year, once during the European summer holidays and once just before Christmas. They aim to review customer spending behavior over the holidays, what types of purchases are made and how spending varies across countries. Almost 10,000 households from 12 different countries were surveyed. This year, the data also included information on how the global coronavirus pandemic has changed the lives and consumption habits of customers who spent the most money during the constraints, how they managed their finances and what their consumption plans are for the coming months. Ferratum Bank Latvia was part of the fourteenth summer holiday barometer survey.
About “Ferratum group”
“Ferratum Group is an international company that provides short-term loans and consumer loans online, as well as loans to small and medium-sized enterprises. You can apply for a loan and conclude a loan agreement using a computer or mobile phone on the Internet. Ferratum was founded in 2005 and is headquartered in Helsinki, Finland. The Ferratum Group has expanded rapidly and currently operates in 25 countries in Europe, Africa, South America, North America and the Asia-Pacific region. Ferratum Group is listed on the Frankfurt Stock Exchange’s Prime Standard under the code “FRU”. For more information, visit www.ferratumgroup.com.
“Ferratum Group”
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