Belgium has experienced a substantial increase in savings, with citizens saving €5 billion more in 2023 compared to previous years, according to data from the National Bank of Belgium (NBB),

as reported by VRT NWS and Knack. The savings rate, representing disposable income not spent by Belgians, reached 14% during the first half of 2023, marking a significant rise.

For years, the savings rate in Belgium remained relatively stable at around 12%, except for a notable spike in 2020 and 2021 caused by the COVID-19 pandemic. However, the savings rate surged to 14% in the initial three months of 2023, resulting in a €5 billion increase.

This increase can be primarily attributed to Belgium's automatic wage indexation policy, wherein approximately one million employees received a 10% pay increase at the beginning of the year. Despite the significant boost in disposable income, household spending did not rise by a proportionate amount. The National Bank reported that €75 out of every €100 of additional disposable income was saved. Other factors contributing to increased savings include rising interest rates and concerns about potential tax increases due to Belgium's budget deficit.

The National Bank projects that the savings rate for the entire year will be 13.5%, 1.5 percentage points higher than pre-pandemic levels. This implies that households will save nearly €5 billion more this year compared to previous years. In 2024 and 2025, the savings rate is expected to remain at 13%, resulting in an additional €3.2 billion savings each year. Photo by MADe at Dutch Wikipedia., Wikimedia commons.