Ipsos Money Matters

People around the world are continuing to feel the pinch and laying some of the blame at the feet of politicians.

As 2024 winds down the cost-of-living crisis is dragging on.

Despite red-hot inflation cooling off in several countries, the financial pain has remained.

As Ipsos CEO Ben Page notes: "This all has political consequences. This was the year people’s anger at their financial situation cut through at the ballot box. Incumbents in advanced economies such as the U.S. and the U.K. lost elections this year. Next year sees voters in Germany and Canada heading to the polls."

Under pressure

Household budgets in Germany, Canada and beyond have been stretched for quite some time now.

The seventh edition of the Ipsos Cost of Living Monitor reveals just over six in 10 (61% on average across 32 countries) say they're just about getting by or finding it very/quite difficult to manage financially these days. That's essentially unchanged from one year earlier when 60%, on average across 33 countries, said they were just about getting by/finding it difficult.

The haves and have-nots

And those at the bottom of the economic ladder are having the toughest time.

Just over four in 10 (41% on average globally) in low-income households are finding it difficult to manage financially versus 32% in middle-income households and 19% in high-income households. While people significantly struggling in the highest-income bracket has dropped vs. mid-2022, when inflation was peaking in some places, the proportion of mid- and low-income people struggling at the end of 2024 is actually up slightly compared to June 2022.

The sudden onset of a global pandemic in early 2020 threw pre-existing class divides into sharp relief. And the worldwide economic shock was good for some, such as those who saw the value of their homes and stocks rise, and bad for others who were just scraping by when the price of toilet paper and other essentials shot up.

Now that the dust has settled, just over one-third (37% on average across 32 countries) say they're a little/much worse off than they were pre-pandemic while a similar proportion (33%) say they're a little/much better off.

The blame game

The pandemic may have lit the match of inflation, but consumers appear to understand that an imperfect storm of issues then fueled persistent price hikes. Close to three in four (70% on average across 32 countries) say the top driver of the rising cost of living in their country today is the state of the global economy.

But many citizens are also pointing the finger at politicians with almost the same proportion (69% globally) saying the policies of their national government are to blame, followed by interest rates in their country (66%) for the ongoing money issues.

Saying auf wiedersehen to 2024

Almost three-quarters (72%) of Germans say 2024 was a bad year for their country. Appetite for change is in the air.

Germany's Chancellor Olaf Scholz recently lost a vote of confidence, due in part to financial woes, with a snap election now set.

Germany narrowly missed falling into a recession earlier this year, with immigration coming into sharp focus amid economic strain. Our November 2024 What Worries the World polling shows concern about the perceived top three issues in Germany — immigration control (44%, up two percentage points month-over-month), inflation (33%, +six points) and poverty/social inequality (31%, +six points) — has risen amid the political turmoil.

Decision time

During Chancellor Scholz's reign national consumer confidence has taken a hit and is down significantly in the years since he was elected in late 2021.

Germans are assigning equal blame to national government policies (64%) and the full-scale invasion of Ukraine in early 2022 (also 64%) for the financial mess. On Feb. 23, 2025, they will decide who should lead the country next.

"The German economy has underperformed in the past five years. There is real concern about the lack of innovation and investment, burdensome bureaucracy and the heavy price German energy-hungry industry has to pay for the ambitious decarbonization policies of the outgoing government," says Robert Grimm, Director of Public Affairs in Germany for Ipsos.

"Political campaigners must convince the electorate that they have the right policies to kick-start the economy. That is going to be the winning ticket."

Oh, Canada!

Canadians will also soon be heading to the ballot box to decide if it's time for new leadership. The Great White North must hold a federal election by Oct. 20, 2025, though recent political chaos means that could come sooner rather than later.

Anger towards Canadian Prime Minister Justin Trudeau spilled out into very public view at the dawn of 2022 during the so-called Freedom Convoy amid the COVID-19 crisis. Ipsos Canada polling showed the Liberal government under Trudeau's leadership was neck-and-neck with the Conservative Party of Canda in the immediate wake of the pandemic protests. But Ipsos polling for Global News done this week finds the Liberals have now lost significant ground to the Conservatives and look likely to suffer a devastating defeat.

Canadians, like people around the world, have seen the price of everything from hot dogs to houses surge, then stay high, in recent years. Inflation has consistently been a top issue for people in Canada, with 42% saying it's a top issue for their country in November.

While the government isn't seen as the top culprit, just over two in three (67%) lay blame with national policies for the money troubles.

A tax holiday aimed at giving cash-strapped Canucks some relief signals the government understand voters are still feeling pinched even though inflation has eased.

And many (62%) Canadians also rightly or wrongly blame immigration for elevated prices, particularly for housing, which Trudeau recently tried to address.

Glass half empty

The first half of this decade has been rough, with the pandemic, inflation and ongoing conflicts leaving a mark on many. It's really little surprise some seem to be waiting for yet another overpriced shoe to drop.

The Ipsos Global Consumer Confidence Index finds a slim majority (54% on average across 29 countries) expect the overall quality of their life to be much better in five years than it is now, falling to 41% among Canadians and 36% among Germans.

In the shorter term, a strong majority see the wage-price gap widening as 79%, on average across 33 countries, predict prices in their country will increase faster than people’s incomes in the next 12 months.

More clouds overhead

Those hoping for an end to the many political and economic storms of the 2020s so far might just be out of luck.

With U.S. President-elect Donald Trump officially taking office on Jan. 20, 2025, plus the elections in Germany and Canada, it's looking like it will be yet another bumpy year. And the threat of tariffs from Trump means even more financial pain could be on its way some countries, particularly for America's neighbors to the north and south. Buckle up.

Check out more of our global polls here: https://www.ipsos.com/en/news-and-events/overview