Spending: How an economy plays a part

Transcript

00:00A person's personality and psychology plays a big role in someone's spending or saving

00:11habits.

00:12But keeping that aside, just talking from a perspective of the economy impacting that,

00:17I think the two, three factors which affect that, one of the strongest one would be the

00:23unemployment level in any economy.

00:25If the economy is growing strongly and people have jobs and are earning good money and they

00:31have job security, then obviously they would have more comfort and confidence in going

00:35ahead and spending.

00:37So the economic growth in any situation matters.

00:41The second thing would be, once you have earned the money, you know, the exposure to media

00:47or the exposure to kind of advertising and promotions encourages consumerism.

00:53We see that this happens more in urbanized areas than the rural ones.

00:58So the more urbanized an economy is, the probably higher the propensity of the people living

01:03there to spend.

01:05And the third would be obviously the ease to goods and services, the access to goods

01:11and services.

01:12I mean, where am I spending the money on?

01:14So the economy, if it's a developed economy or whatever economy there is, but if I can

01:20access fancy food, if I can buy imported goods, if I can buy fancy clothes and they

01:26are easily available, there are malls and details and everything around, then obviously

01:30my ability to spend gets a little bit of encouragement from just that ease of access to goods and

01:36services.

01:37So to summarize, I think from an economy perspective, a strong growing economy with more open retail

01:43markets, easy access to goods and overall consumer's exposure to consumerism promotes

01:52spending.