The effects of coronavirus on household finances and financial distress
- Document type
- Bourquin, Pascale; Delestre, Isaac; Joyce, Robert
- Institute for Fiscal Studies
- Date of publication
- 29 June 2020
- IFS Briefing Note. BN298
- Trends: economic, social and technology trends affecting business
- Business and management
- Material type
The effect of the COVID-19 crisis on the economy has been huge. National income fell by 20% in April, to a level last seen in the early 2000s. But the impact of this vast aggregate shock on the finances of different households will vary widely.
This report uses a novel source of real-time data on households’ finances from Money Dashboard, a budgeting app, to explore the impacts of the crisis so far on earnings, incomes and financial distress, and how they are evolving. This is complemented with household survey data to explain and verify the key trends.
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