Financial expert forecast: This is what consumers can expect in 2024 - More money, higher costs?

Financial expert forecast: This is what consumers can expect in 2024 - More money, higher costs?

According to a report from amp2.wiwo.de.

2024 is expected to bring some positive changes for consumers after 2023 was marked by economic uncertainty and high inflation. Many economic research institutes expect a significant decline in inflation and moderate economic growth. Purchasing power and real wages are expected to increase in 2024, which could lead to an improvement in the financial situation of many consumers.

The adjustments to the minimum wage, citizens' benefits and pension increases will also have a positive impact on the financial situation of many people. In addition, tax adjustments will be made that could lead to income tax relief. However, there will also be adjustments to social security contributions, which will mean that high earners will have to pay a little more.

However, the costs for energy, insurance and mobility are also expected to rise in 2024. In particular, the increased VAT rates and the rise in the CO2 price will be noticeable in higher costs for gas, electricity and petrol. Furthermore, price increases for insurance and airline tickets are to be expected.

Overall, it can be said that 2024 will be accompanied by positive developments in income and taxes for consumers, but also with rising costs for energy, insurance and mobility. As a financial expert, I therefore estimate that consumers' overall financial situation will improve slightly, but that they should still be prepared for increasing expenses.