Analyzing the effect of COVID-19 in the financial behavior of consumers and investors

Abstract

COVID-19's impact on GDP and consumption has already been recognized by top economic analysts. Some experts even anticipate the globe will be hit by the worst downturn since the Great Depression. Unprecedented effects on the economies of all countries are being caused by a newly discovered coronavirus. Considering that the COVID-19 pandemic isn't your typical catastrophe, several efforts have been made to try to rein in the disease's spread. Economic instability in the country has emerged as a foreshadowing of shifting market dynamics as a consequence of the deep relationship between public health initiatives and the lockout. Retail investors' financial attitudes have a direct impact on their investment decisions. The competitiveness, expansion, and economic integration of any market is driven by consumers. However, how much of the economic instability-induced change in consumer behaviour will last is a question that has to be answered. Research has recognized and explored this link, but the measures of financial attitude and behaviour still vary greatly and are often provided in the form of questions rather than declarative statements, which is problematic. As a result, nothing is known about how retail investors react to health crises, such as the present epidemic of COVID-19.