The Transunion Consumer pulse index says 49% of Namibian consumers anticipate difficulties meeting their existing bills and loans despite a 20% increase in income compared to Q3 of 2024.
“Despite an overall decrease in consumer inflation to 4.9% in the first five months of 2024, it remained a significant concern for respondents — exacerbated by the sharp escalation of transport inflation driven by rising fuel prices,” the report reads.
In response to this, the consumer pulse index reports that 52% of Namibians opted to reduce discretionary spending, particularly on dining out, travel and entertainment.
This trend was most prominent among Millennials who accounted for 56% and Gen X with 57%.
Additionally, many are prioritising financial preparedness: 30% aimed to pay off debt faster, and notably, 25% of households increased contributions to emergency funds, with Gen Z leading the charge at 33%.
“In response to these challenges, many consumers revised their household budgets in Q2 2024. Over the past three months, 52% opted to reduce discretionary spending (dining out, travel and entertainment), especially Millennials (56%) and Gen X (57%). Furthermore, 27% cancelled or reduced their usage of digital services, and another 27% cancelled subscriptions and memberships” the report read.
However, looking forward, the report noted there’s cautious optimism, 81% of consumers feel optimistic about their future income prospects, particularly younger generations (Gen Z: 85% and Millennials: 82%).
“To navigate potential hurdles, many plan to increase payments towards bills and loans (46%), while some will seek temporary work (35%) or borrow from friends and family (25%) and a significant portion (44%) intend to increase spending on retirement funds and investments.”
“Nevertheless, reflecting their optimism about future income, 44% intended to increase spending on retirement funds/investing, 39% would do so on medical services, and 36% planned to spend more on digital services,” shows the report.
