In Q1 2024, the household saving rate fell, while the corporate profit share rose. The general government budget deficit narrowed slightly to 4.5% of GDP.

The National Bank of Belgium has published the results of its latest business survey. This month, business confidence held steady at the slightly improved level reported in May.

Consumers expressed more optimistic expectations regarding the general economic situation and less concern about the anticipated development of unemployment. Households also intend to save more and expect their financial situation to improve.

This buffer serves as a temporary additional capital reserve, providing banks with the necessary leeway to absorb credit losses in the event of a sharp increase in loan defaults.  

Foreign trade has seen moderate negative growth in recent months, driven mainly by trade in chemical and energy products, transport equipment, and machinery.

With inflation having fallen sharply, the ECB cut interest rates in early June. It is closely monitoring wage growth as wages had risen 5% year-on-year in the euro area in early 2024. This factor could exert upward pressure on inflation. Can we expect to see further rate cuts soon? Find out in the latest article on our blog, co-authored by Jana Jonckheere and Hélène Zimmer.