Belgian families spend more on oil and save less

22nd May 2008, Comments 0 comments

Families will save 11.5 percent of their available income this year, 1 percent less than 2007, predicts Federal Planning Bureau.

22 May 2008

BELGIUM - According to a forecast by the Federal Planning Bureau, a public agency which makes studies and projections on economic, social and environmental policy issues, Belgian families will save 11.5 percent of their available income this year.

This is 1 percent less than 2007 and an all-time low in 40 years. The reason for the drop in savings has everything to do with the high cost of oil, which is weighing more and more heavily on the budget of an average family.

The KBC bank has calculated that the average family will spend EUR 600 more on petrol, diesel and domestic fuel oil. The total energy bill for Belgians will be even higher because the cost of natural gas and electricity is also rising.

The KBC expects an inflation rate of 3.8 percent this year.

Spending power
The KBC does not expect the purchasing power of the Belgians to decline. To the contrary, as contradictory as it seems, the KBC expects Belgians’ purchasing power to increase slightly. The explanation for this includes the wage indexation and increases and an increase in the expected number of jobs available.

The calculations by the KBC bank are macro-economic.

The Federal Planning Bureau (FPB) is a public agency. The FPB makes studies and projections on economic, social and environmental policy issues and on their integration within the context of sustainable development.

To that end the FPB collects and analyses data, explores plausible evolutions, identifies alternatives, evaluates the impact of policy measures and formulates proposals. Government, parliament, social partners and national and international institutions appeal to the FPB's scientific expertise.

[flandersnews.be / Expatica]

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