Belgian households had a saving rate of 14% in the first quarter of the year, down from 15.1% in the last quarter of 2023.
This is according to the National Accounts Institute (ICN) and the National Bank of Belgium (BNB), which also noted that household disposable income dropped by 0.5% in the first three months of the year.
Meanwhile, consumption expenses grew by 0.8%, causing less ability to save.
Employee compensation negatively impacted household income by 1.1 percentage point, the main reason for the decrease.
The ICN and the BNB consider this a return to normal levels, following the impact of purchasing power bonuses in the previous quarter.
Property income and other net current transfers also had a negative effect on disposable income. However, the mixed income of the self-employed and net income taxes positively contributed.
Meanwhile, the investment rate for households was at 8.5% in the first quarter, a slight increase from the previous quarter (8.4%).
Company profits on the rise
Non-financial corporations saw a significant increase in net profit margin rates in the first quarter, reaching 43%, compared to 41.3% in the last quarter of 2023.
A sharp decrease in employee compensation by 2.4% had a positive impact on company margins, with a 4.7% increase in operating surplus.
Financial corporations were also able to invest more in the first three months of the year, with an investment rate of 27.5% (compared to 26.7% in the previous quarter).
The public administration deficit improved to 4.5% of GDP, down from 5.2% in the previous quarter. Revenues remained stable while expenses decreased.
