What ‘vibecession’? Some 80% of people in Singapore say they’re bullish about the economy

Business
admin
April 10, 2024
0
66
8 minutes read

Almost 80% of Singaporeans are optimistic about the economy, according to SurveyMonkey’s 2024 poll.

Damircudic | E+ | Getty Images

Majority of the residents in Singapore are bullish about where the economy is headed and confident that the government will be able to support them during their retirement.

That’s according to a poll by SurveyMonkey, carried out across nine countries in collaboration with CNBC.

Some 61% of adults in Singapore — one of the world’s most expensive cities to live in — feel like they are living paycheck to paycheck, according to SurveyMonkey’s 2024 “Your Money International Financial Security” survey.

Yet 79% say they are optimistic about where the economy is headed.

The results in Singapore buck the global trend, where less than half the adults polled are positive about where their economy is going. People in Singapore (79%) and Mexico (74%) are optimistic about their financial prospects.

However, majority of the adults polled in the other countries are far less bullish about their future: 49% in the U.S., 37% in the U.K., 36% in Australia and 34% in Germany expressed the same optimism.

The survey gathered results from over 4,300 adults living across Australia, France, Germany, Mexico, Singapore, Spain, Switzerland, the United Kingdom and the United States between March 8 and 25. The results provide a picture of the financial sentiment of adults globally.

‘Vibecession’ trends globally

From the onslaught of mass layoffs to global inflation, many people around the world are pessimistic about the economy and feel anxious about how it affects their finances.

That’s despite predictions by the International Monetary Fund that the global economy is approaching a “soft landing” and that inflation is slowly moderating.

Yet SurveyMonkey’s poll found that majority of adults across the nine countries surveyed are grappling with financial stress, and inflation is their no.1 source of concern.

Adults in Mexico, Spain and the U.S. were the most stressed out about money, and more than seven in 10 say they are “very or somewhat stressed” about their personal finances. On the other hand, about 49% in Singapore and 48% in France report the same level of stress.

Here’s the percentage of people who report to be financially stressed in each country surveyed:

Mexico: 73%
Spain: 72%
United States: 70% (tie)
Australia: 70% (tie)
United Kingdom: 63%
Germany: 57%
Switzerland: 55%
Singapore: 49%
France: 48%

“Most experts agree that pandemic supply chain issues have largely been resolved,” SurveyMonkey CEO Eric Johnson said in a CNBC report. Additionally, “although experts continue to keep an eye on global unemployment, joblessness has dropped below pre-pandemic levels.”

So why are people still pessimistic about the future?

“Vibecession” is a global trend that has emerged in the past two years, where the average consumer sentiment about the economy rings negative, even though financial data shows the economy is doing just fine.

Put simply, it’s like a recession — but based on vibes and perception, not fact.

How Singapore stands out

Notably, Singapore is the only country where the majority of its residents feel they are financially better off than their parents when they were at the same age. The majority of respondents in the other eight countries reported feeling like they are “worse off” or “about the same” in the same category.

Strategies for achieving a sense of financial stability vary across countries.

While almost half the respondents in Australia and the U.K. prioritize “spending less than you make” to feel financially secure, respondents in Singapore value having a well-paying and steady job.

In terms of personal income, only 12% of those surveyed in Singapore say they need to make 50,000 Singapore dollars (about $37,110) a year to feel “financially secure.”

Of the respondents, 31% said they need to make at least SG$100,000 annually to feel financially secure, 30% said a minimum of SG$500,000, and 22% said at least SG$1 million. Only 4% say they will “never feel financially secure,” according to the survey.

Those in Singapore are also bullish on investments. More than half (51%) of survey respondents in the city-state say they rely on investment income for financial security.

Additionally, 23% of respondents in Singapore said diversifying their investments was “most important” to achieving financial security, while 20% said owning their own business was key. Among the nine countries surveyed, Singapore had the highest percentages recorded for both categories.

Only about half the respondents across all countries reported having saved an emergency fund, with Singapore leading, where 73% of those surveyed said they have set aside money for unforeseen circumstances.

In terms of retirement, France and Singapore reported the highest percentage of respondents who were on schedule or ahead of schedule for retirement savings.

One key finding showed that out of all the countries surveyed, residents of Singapore felt highly optimistic about their government when it came to their finances. About 78% of those surveyed feel confident the Singapore government will be able to financially support them during retirement, which is notably higher than the responses from the other eight countries.

Following Singapore was Mexico (54%) and Switzerland (51%). The majority of respondents in the rest of the other countries lack confidence in their government’s ability to support them financially in retirement, according to the survey.