Nevertheless, recent numbers show citizens saving money has increased to a third, showing that Lithuanians may be well prepared for this crisis. This data was revealed by a special Europe-wide study of the coronavirus pandemic’s financial impact, performed by the credit management company Intrum, in regard to European consumer payments.
Among the Baltic States, Lithuania had the largest percentage of citizens saying that their financial situation has worsened compared to the previous six months. In Latvia and Estonia, this numbered respectively 49 and 53 per cent. Across Europe, an average of 48 per cent of citizens revealed that during the pandemic, their financial situation worsened. The largest number of such responses was found in Greece with 67 per cent, and the smallest in Denmark with23 per cent.
Furthermore, Lithuanians were found to be amongst the most pessimistic in Europe regarding their future. Only 18 per cent of Lithuanians expect that over the coming six months, their financial situation will improve. Even fewer believed this in Latvia (15per cent). Meanwhile, the Estonians are among the most optimistic in Europe. Fifty-five per cent of Estonians think that over the coming six months, their financial situation will improve.
“Reductions in incomes, financial stability, and certainty over work serve to further highlight the necessity for individuals to manage their finances appropriately, and have the necessary knowledge for it. The citizens’ ability to plan their expenses and suitably arrange their priorities, adhere to financial discipline and uphold their financial commitments significantly influences not only their own capacities to overcome difficulty, but also how quickly the European countries’ economies will recover after the crisis,” Intrum director for the Baltic States Ilva Valeika says.
It is notable that a significant number of citizens also perceive a positive side of the crisis. For example, 38 per cent of Lithuanians participating in the study indicated reduced expenses as a positive aspect of the pandemic. To compare, 42 per cent of Latvians, 65 per cent of Estonians and on average, 38 per cent of Europeans celebrated reduced expenses.
Upon performing the study, it was also revealed that there is an increased number of Lithuanians aiming to accumulate savings. Last year, 29 per cent of Lithuanians reported they were not saving based on the most recent data, and this number has fallen to just 20 per cent. Eighty per cent of Lithuanians plan their financial future and allocate a sum of money for savings every month, and 14 per cent of Lithuanians allocate more than a fifth of their income to savings. However, 42 per cent of the country’s citizens say that due to the coronavirus crisis, they save less than before every month and 58 per cent are not satisfied with the sum they save.
The credit management company Intrum has been performing an annual European consumer payment study since 2013. This special study aimed at evaluating the COVID-19 pandemic’s impact on citizens’ finances across 24 European countries was performed in May 2020. During the study, 4,800 individuals aged no younger than 18 were surveyed, with at least 200 per country.
Intrum operates across 25 countries and employs over ten thousand specialists, who offer their services to 80 thousand companies across Europe. The company was founded in 2017 following the merger of Intrum Justitia and Lindorff. Intrum’s main headquarters is located in Stockholm, and the company’s shares are floated on the Stockholm stock market.
