Household savings rates in Belgium decline amid rising costs

In Belgium, the household savings rate has seen fluctuations, reaching 12.8% at the beginning of the year and exceeding 13% at the end of last year. Despite a 0.5% increase in disposable income during the second quarter, household spending rose by 1.8%, leading to a decrease in savings.

While the National Bank has not provided a specific explanation for the low savings rate, the period has been marked by significant inflation and a rising cost of living.

In the corporate sector, the profit margin for Belgian companies rose to 45% in the second quarter, the highest level since late 2022. This increase was driven by a 1.4% rise in value added, which outpaced worker compensation growth of 0.8%. Meanwhile, the corporate investment rate fell to 26.6% of value added, down from 27.3% in the first quarter. Household investment rates remained stable at 7.9%.