Belgian purchasing power should increase by 2.2% this year

This larger increase is due to further decreases in personal income taxes and higher wage indexation in the private sector, combined with a slowdown in inflation.

TheThe Bureau du Plan sees Belgian purchasing power (real disposable income) increase by 2.2% at least this year, according to its latest forecast released on Thursday. This is a slightly higher increase than last year (+ 1.3%).

This greater increase is due to further cuts in personal income tax (as part of the last phase of the tax shift) and higher wage indexation in the private sector, combined with a slowdown in the labor market. 'inflation. This is expected to increase from 2.1 to 1.7%, thanks in part to the normalization of electricity prices.

Stable consumer confidence

The rise in purchasing power, combined with stable consumer confidence, should lead to a 0.8% increase in consumption, thus allowing a sharp rise in the personal savings rate. Housing investment is expected to grow by 4.1 per cent in 2019, the Planning Bureau reports.

Jobs will still be created but at a slower pace than in recent years. In the previous four years, domestic employment has grown by 226,000. The Plan Office plans an increase of 56,000 posts in 2019 and 39,000 next year. The decline in the number of unemployed will be lower than in previous years: -27,000 this year and -17,000 in 2020.