Skip to content

People’s Spending Habits and the Factors That Affect It

Consumer spending habits makes up the largest part of India’s Gross Domestic Product (GDP). It is almost 60% of over USD 2.8 million. This warrants a deeper look into people’s spending habits and the factors that affect it. Monetary policies are generally used to influence and direct spending. If spending drops, policy makers reduce interest rates so that people will borrow and spend more. This is what boosts the economy in this situation.

But this is not the only influencing factor on people’s spending habits. There are various external factors that result in altering or reducing how and where people tend to spend their money. Events such as natural disasters, data leaks and others, affect how people spend money.

Gain global success through Asian businesses and have international business truly succeed in Asia with the Accelerated Management Program (AMP) from the National University of Singapore Business School.

Back To Top