Between 26 November and 4 December 2024, Profacts surveyed a representative sample of 2,000 Belgians aged between 16 and 85. The results show that Belgians expect their spending to increase in the coming months. More than half (55%) of respondents anticipate higher energy costs, while 49% expect supermarket prices to rise. Similarly, 39% foresee higher mobility expenses, and 38% predict rising telecom costs.
Koen De Leus: “People often suffer from a form of ‘recency bias,’ where they extrapolate recent events into the future. Gas prices – and the electricity tariffs often linked to them – are currently lower than they were last year and well below half of what they were in 2022, the year Russia invaded Ukraine. While an exceptionally cold winter could disrupt this trend, European gas reserves are well stocked, making it likely that a normal winter can be weathered without dramatic price spikes. Looking ahead, we expect gas prices to decline further. From 2026 onwards, increased gas capacity, especially in the United States, will bring more supply to the market. This will also be good news for European businesses, helping to narrow the price gap between Europe and the US.”
Impact on personal finances
The main factors that Belgians’ expect to impact their personal financial situation in 2024 are high inflation (81%), the energy crisis (78%) and the outcome of the Belgian elections (76%).
In response to financial pressures, many Belgians plan to adjust their spending habits, particularly on leisure activities. Three in ten intend to spend less on entertainment and recreation. A similar proportion plan to spend less on eating out, while 26% will reduce their travel budget.
7 in 10 Belgians unable or hardly able to save
Almost a quarter (23%) say they struggle to cover their monthly expenses, while a further 47% say they have just enough to get by without being able to save or invest. Only 30% of Belgians are actively saving or investing, with 24% building up savings and 6% focusing on preserving or increasing their wealth as a result of having achieved their financial goals.
Over the past 3 years, 41% of Belgians have been able to save less than before, and 38% expect this trend to continue in the coming year. In the same period, 31% have seen their financial situation worsen, while 53% say it has remained the same. Looking ahead, 59% expect no change in their financial situation over the next 12 months.
The survey also highlights the postponement of spending over the last 3 years, with 40% delaying purchases below €15,000 and 41% postponing purchases above this threshold. Only 23% of respondents expect to make a purchase of more than €15,000 in the coming year.
Young people more optimistic than older generations
There is a striking divide between age groups. While 70% of respondents have a negative perception of the current state of the Belgian economy, only 13% expect it to improve over the next year, with 43% predicting the status quo and 44% foreseeing further deterioration.
However, younger respondents are more optimistic. More than half (53%) of 16-24-year olds have a positive view of the Belgian economy, in stark contrast to the 55+ age group, where 81% have a negative outlook.
Koen De Leus: “In recent years, the world has been confronted with various shocks, such as deglobalisation and climate change. This is typical of a Fourth Turning: a roughly 20-year period of turbulence within an 80-year cycle. Interestingly, this coincides with the average human lifespan. The generation that lived through the previous Fourth Turning – the Great Depression and the Second World War – is slowly disappearing. As a result, the stabilising institutions they created, such as NATO, the World Trade Organisation, the IMF and the World Bank, are increasingly being challenged and are all under fire. This Fourth Turning is further exacerbated by trends that amplify unrest, such as the shift towards deglobalisation, climate change, ageing populations and the very high debt levels of Western governments. This is ushering in a new global economy driven by underlying forces that are more inflationary in nature and are likely to push long-term interest rates structurally higher rather than lower. We believe, for example, that the downward trend in US interest rates is gradually coming to an end.”
BNP Paribas Fortis: helping clients meet challenges
As a trusted financial partner, BNP Paribas Fortis supports its clients at every stage of their lives. The bank provides expert advice – both in person and remotely – and offers services tailored to address their financial needs.
One such service is the free budget management tool in the Easy Banking App, which allows customers to categorise their income and expenses. More than half a million customers currently use this feature, which includes alerts when they exceed pre-set spending limits. Users aged 12 to 24 use the tool at least once a month. In June 2024, BNP Paribas Fortis enhanced this system with the launch of the Budget Planner tool, which has already been adopted by almost 90,000 users.
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BNP Paribas Fortis (www.bnpparibasfortis.com) offers the Belgian market a comprehensive range of financial services for private individuals, the self-employed, professionals, companies and public organisations. In the insurance sector, BNP Paribas Fortis works closely, as a tied agent, with Belgian market leader AG Insurance. At international level, the Bank also provides high-net-worth individuals, large corporations and public and financial institutions with customised solutions, for which it is able to draw on the know-how and international network of the BNP Paribas Group.
BNP Paribas (www.bnpparibas.com) is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 185,000 employees, including more than 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.
