A recent study by a US research centre found that more than half of Americans experience negative mental health consequences, such as anxiety and sleeplessness, due to their personal financial situation. This suggests that financial anxiety is also on the rise in other parts of the world, which are also facing unprecedented rates of economic uncertainty.
Experts believe that successive shocks to the world financial system, including Brexit, US-China trade tensions, the pandemic, and the Russia-Ukraine war, have combined to keep uncertainty high.
The dire global situation has led the International Monetary Fund (IMF) to lower its growth expectations to around 3 per cent over the next five years. This baseline forecast of 3 per cent for 2028 is the lowest medium-term growth projection since 1990, and well below the average of 3.8 per cent from the past two decades.
The rising tide of economic uncertainty has triggered a surge in financial anxiety among individuals worldwide. Financial anxiety is a feeling of worry about your money situation, including your income, job security, debts, and ability to afford necessities and non-essentials. It’s a common problem that can affect people of all ages and income levels, but people with less income may experience additional stress due to the nature of their jobs and lack of access to resources to manage their financial stress.
Financial anxiety can have numerous and far-reaching negative consequences. Individuals who experience prolonged stress and worry about their finances often face adverse effects on their physical and mental health. Chronic anxiety can cause sleep disorders, high blood pressure, and other health issues, which can deteriorate overall well-being.
Financial anxiety can also strain personal relationships and lead to a decrease in productivity and concentration, both at work and in personal life.
Although it’s difficult to say when or how we can overcome this economic uncertainty, there are indeed ways to cope with the resulting anxiety.
Some of the solutions for financial anxiety lie in the hands of governments that can play a crucial role in alleviating rising financial anxiety by implementing policies and measures that promote economic stability and provide support to individuals facing financial difficulties.
Governments can implement policies that promote stable economic growth, reduce unemployment rates, and foster a favourable business environment.
This can include investing in infrastructure projects, promoting entrepreneurship, and providing tax incentives for businesses to stimulate job creation and economic development.
Another important help that governments should offer is to establish or expand social safety net programs to provide a safety net for individuals during times of economic uncertainty. This can involve unemployment benefits, affordable healthcare, housing assistance, and access to affordable credit.
However, in times of economic uncertainty, governments themselves can suffer financial stress and in most cases need help themselves.
But there is no need to worry there are still some ways that individuals can use to help themselves.
Experts suggest that creating and following a budget allows individuals to gain control over their finances and reduce uncertainty while seeking professional assistance and building an emergency fund can also help.
Dear financially stressed citizens be aware that constantly consuming financial news or engaging in discussions that fuel financial anxiety can further amplify stress levels. You should realise that engaging in stress-reducing activities such as exercise, meditation, or hobbies can have a positive impact on mental health.
