Belgian households were able to save as much as 19.1% of their income in the first quarter of this year.
This is a record and significantly more than in the previous three months, when the savings rate was “only” 12.7%, according to statistics from the National Bank (BNB) published on Friday. Households were able to save more money as their consumer spending fell 6% over this period. Their disposable income also increased by 1.4% compared to the previous quarter. Although some components of disposable income were negatively affected by the coronavirus crisis and containment, others, on the other hand, developed more favorably, according to the National Bank.
According to more recent figures from the NBB, the savings rate has also increased significantly in recent weeks. “We expect the Belgians to save a lot more this year than in previous years and that’s a good thing,” said spokesman Geert Sciot.
The containment allowed consumers to spend less money on, for example, travel and many families were able to save more than usual, he said. “And this is good news because it means that little or no additional measures are necessary to stimulate Belgian consumption. In times of crisis, such a high savings rate is in fact a positive element because it indicates that the people did not get poorer during the crisis. “
The household investment rate – spending on building and renovating houses – fell to 8.9% of disposable income (compared to 9.6 in the fourth quarter of 2019). These investments fell sharply, by 5.5%, while disposable income continued to rise, explains the National Bank.
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