Anticipating economic challenges in 2024, residents of Brno are adopting a cautious approach, with 60 percent opting to delay substantial investments, including car purchases, real estate acquisitions, and expensive household equipment. This sentiment emerges from a survey conducted by the STEM/MARK agency for Home Credit. A quarter of the respondents are forgoing summer vacations, and those who plan to travel are inclined to book early amid fears of rising prices.

The survey reveals a proactive financial mindset among citizens, as they strategically plan and evaluate the financing aspects of significant purchases. Miroslav Zborovský, the ombudsman of Home Credit ČR and SR clients, notes that the challenging economic situation is prompting individuals to actively manage their family budgets. This trend underscores a growing awareness of both expenditure and income considerations.

Experts highlight various economic factors influencing these financial decisions, such as the recent drop in apartment prices, the central bank’s repo rate reduction, the Czech Republic leading in inflation within the European Union, and some retail chains initiating price cuts even before Christmas. Citizens, adapting to the economic landscape, are responding by adjusting their spending patterns and, if necessary, exploring additional income sources.

The survey reveals that two-thirds of respondents expect higher expenses in the coming year, while only a third anticipates higher income. To address the financial strain, 28 percent of respondents plan to seek a pay raise from their employers. Among them, a quarter aims for a minimum wage increase of up to ten percent, while another quarter seeks an addition of up to 20 percent.

While 37 percent of respondents prioritize a summer vacation, 40 percent aim to travel more economically by avoiding travel agency services. Another 34 percent are undecided, contemplating whether to opt for a more budget-friendly independent travel experience or utilize a travel agency for their plans. The survey reflects a community adapting to economic uncertainties by adopting a cautious and strategic financial approach in the face of evolving economic dynamics.

Article by Prague Forum