Europeans sharply divided about future prospects
6 September 2016
While more than a third (37%) of Europeans are optimistic about their future standard of living over the next five years—over a fifth (23%) are pessimistic, according to a new study conducted by ING and Motivaction.
There are sharp divisions on personal goals and expectations depending on people’s background, income, personal circumstances and where they live. In general, people’s expectations reflect their experiences over the last five years.
“Sluggish growth in Europe is clearly linked to the growing divide between people’s economic experiences, and we see this divide reflected in their expectations,” says ING Chief Economist Mark Cliffe. “Those who have fared worse over the past five years typically expect it to continue, and are far less likely to set financial goals, while whose have benefited are more likely to.”
The findings come from a new report from ING and Motivaction, ‘Bridging the Empowerment Divide’, which is part of ING’s ongoing Think Forward Initiative to help people make smarter financial decisions. The study was conducted among over 13,000 people in 13 countries and explores their values in life, views on goal setting and standard of living.
A picture of inequalities
“The study shows a clear picture of inequalities in Europe,” according to Martijn Lampert, Research Director Glocalities at Motivaction. “People who don’t have clear financial, professional or personal goals are overrepresented among the lower income classes, the lower educated, and older people. Especially this group is pessimistic about the future, feels discouraged and focuses on the here and now.”
In the faster-growing Eastern economies, people are generally more positive about the future as the economies continue to mature, while a lacklustre recovery in Western Europe leaves people less optimistic.
Among the more crisis-hit economies, Spain is a dramatic exception to the pattern of expectations reflecting past experience. Following a robust economic rebound, a net balance of 54% of people in Spain are now optimistic about their living standards, matching the continued optimism of those in China.
In contrast, people in France, Belgium and Italy are far more pessimistic, reflecting the economic and political challenges facing these countries. Optimism for improvement in the UK is also relatively low.
Expectations in Europe as a whole (37%) also lag behind the US and China, where expectations about standard of living are much more positive (45% and 64%), reflecting the relative strength of these two superpowers.
Read the full report (PDF 14MB) here.