Belgian Household Wealth Soars: A Look at Financial Trends and Investments in 2023

2024-04-12 09:56:38

The net financial wealth of Belgian households rose by 62.5 billion euros last year, to stand at 1,119.1 billion euros in total, the National Bank said on Friday. The low interest rates on savings and current accounts have led to a “particularly remarkable” shift towards term accounts and debt securities, notes the BNB.

At the end of 2023, the financial assets of Belgian households climbed to 1,540.1 billion euros in total, representing an annual growth of 70.6 billion euros. Their financial assets grew thanks to net investments (19.1 billion euros) and valuation effects (51.5 billion euros).

It is in fact mainly term accounts and fixed-income securities, such as government bonds (including the one-year bond issued at the end of last summer, Editor’s note) which have garnered public favor. Investments in these products reached, respectively, 31 and 33.3 billion euros.

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Investment funds and listed shares were also the subject of net acquisitions, amounting to 3.2 and 1.6 billion euros.

“Low interest rates have encouraged households to massively withdraw their deposits from regulated savings accounts (30.5 billion euros) and current accounts (20.4 billion euros),” notes the National Bank. Investments in insurance products also decreased (6.1 billion euros).

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Valuation effects also had a positive impact on household portfolios, both in terms of investment funds (16 billion euros) and insurance products (25.1 billion euros) and listed and unlisted shares (5.5 and 4.9 billion euros, respectively), further analyzes the BNB.

Conversely, household debts increased by 7.9 billion euros, mainly due to an increase in mortgage loans (7.5 billion), and reached an outstanding amount of 349 billion euros.

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