Debt crisis leads to cautious spending...for some

Josie Farnsworth and Dana Murray
TGI Global

The deterioration of economic conditions in recent years is believed to have led to a squeezed middle class who have rising concerns about debt. It is essential for multinational companies who are building global brand strategies to determine the effects and impact of recessions on the middle class around the world and in particular to understand the difference in emerging markets versus developed markets.  

Where are consumers anxious about debt?

There is more anxiety about getting into debt in those with markets that have seen sustained recession, in particular European countries like Germany and Great Britain. This anxiety has also increased over time. This is likely to be a result of an increased awareness of the danger of excessive debt and how this contributed to the economic crisis in 2007. Indeed, there is a pertaining sense that this recession feels different to any previously experienced which is driving this shift in mindset rather than purely having a financial impact1.