Belgians' net financial wealth climbed €62.5 billion to a total of €1,191.1 billion in 2023, the latest data from the National Bank of Belgium (NBB) shows. The low interest rates on savings and current accounts led to a "particularly remarkable" shift.
This increase reflects a combination of net investments, amounting to €19.1 billion, and value appreciation accounting for €51.5 billion. Particularly popular investment products in 2023 were term accounts and fixed-income securities, such as the one-year state bonds in August, with additional investments totalling €31 billion and €33.3 billion, respectively.
Aside from these, Belgians continued to put extra money into investment funds, an increase of €6.4 billion. Simultaneously, the value of these portfolios advanced by €16 billion to €264.9 billion. Publicly traded shares received €1.3 billion, and additionally appreciated in value by €5.5 billion, totalling €83.9 billion.
"The low interest rates encouraged households to massively withdraw their deposits from regulated savings accounts and current accounts," said the National Bank. Investments in insurance products also decreased.
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Depressed interest rates on savings accounts prompted households to withdraw large sums of money from their books and current accounts. As a result, these held €30.5 and €20.4 billion less respectively at the end of last year, €265.2 and €85.3 billion.
Although Belgians invested less in insurance products, down €6.1 billion, these portfolios increased in value by €25.1 billion – to a total of €287.6 billion.
Consequently, Belgians’ financial assets surged by €70.6 billion to €1,540.1 billion last year. During the same period, their financial obligations also rose (up by about €8 billion) to €349 billion due to an increase in home loans.
Overall, this resulted in the growth of net financial assets by €62.5 billion. This was a reversal of fortune from 2022 when Belgians became €95 billion poorer due to falling stock prices and rising interest rates.
