Increase in purchasing power from 2023?  - Economic policy

Increase in purchasing power from 2023? – Economic policy

While 2022 is weighed down by galloping inflation and record energy prices, household purchasing power should start to rise again from 2023, according to the regional economic outlook for 2022-2027, published Monday by the Federal Planning Bureau. and the three regional statistics institutes (the Walloon Iweps, the Flemish SVR and the Brussels IBSA).

In 2020 and 2021, households were able to count on public support measures to deal with the slowdown in the economy due to the coronavirus pandemic and thus limit damage in terms of loss of purchasing power. If the health crisis no longer leads to confinement and closures, the war in Ukraine and the surge in energy prices have darkened the picture. High inflation thus lowers purchasing power in 2022 in all three Regions. However, real per capita income is expected to rise again everywhere in 2023, thanks in particular to the indexation of wages and social benefits above inflation. that year, foresee the Federal Planning Bureauthe IBrussels Institute for Statistics and Analysis, Statistics Vlaanderen and theWalloon Institute for Evaluation, Forecasting and Statistics.

Flirting with pre-health crisis levels

From 2024 until 2027, thehe growth in purchasing power should flirt in each Region with pre-health crisis levels (2015-2019), i.e. 1.4% per year in Brussels, 1.2% in Wallonia and 1.1% in Flanders. The rise in income will be relatively more supported by employees in the Capital Region (thanks to the more marked increase in employment of residents), while in Flanders and Wallonia, the contribution of pensions would be relatively greater. Unemployment is also expected to fall for the period 2022-2027, in Brussels from 15.3% in 2021 to 13% in 2027. Wallonia and Flanders would benefit from a less pronounced decrease, falling respectively from 12% to 11.3% in the south of the country and from 5 .3% to 4.4% to the north.

Less marked in Brussels

Moreover, last year, the rebound in activity after the severe recession of 2020 was less marked in Brussels than in Wallonia and Flanders, due in particular to a weaker recovery in the “trade and catering” branch and a persistent decline in activity in the “credit and insurance” branch. In 2021, GDP growth thus reached 3.9% in Brussels, 7% in Flanders and 6.3% in Wallonia.

For 2022, the Bureau du Plan and the regional institutes estimate this growth at 2.1% in Brussels, 2.8% in Flanders and 2.5% in Wallonia, before slowing down in 2023 to 1.1% in Wallonia and 1 .3% in Flanders and Brussels. Over the period 2024-2027, GDP growth should average 1.1% per year in Brussels, 1.5% in Flanders and 1.3% in Wallonia.

In 2020 and 2021, households were able to count on public support measures to deal with the slowdown in the economy due to the coronavirus pandemic and thus limit damage in terms of loss of purchasing power. If the health crisis no longer leads to confinement and closures, the war in Ukraine and the surge in energy prices have darkened the picture. High inflation thus lowers purchasing power in 2022 in all three Regions. Real per capita income should, however, start to rise again everywhere in 2023, thanks in particular to an indexation of wages and social allowances higher than inflation that year, predict the Federal Planning Bureau, the Brussels Institute of Statistics and d’analyse, Statistiek Vlaanderen and the Walloon Institute for Evaluation, Forecasting and Statistics. From 2024 and until 2027, the growth of purchasing power should flirt in each Region with the levels before the health crisis (2015-2019), i.e. 1.4% per year in Brussels, 1.2 % in Wallonia and 1.1% in Flanders. The rise in income will be relatively more supported by employees in the Capital Region (thanks to the more marked increase in employment of residents), while in Flanders and Wallonia, the contribution of pensions would be relatively greater. Unemployment should also fall for the period 2022-2027, falling in Brussels from 15.3% in 2021 to 13% in 2027. Wallonia and Flanders would benefit from a less pronounced decrease, falling respectively from 12% to 11.3% in the south of the country and from 5.3% to 4.4% in the north. In addition, last year, the rebound in activity after the severe recession of 2020 was less marked in Brussels than in Wallonia and Flanders, due in particular to a weaker recovery in the “trade and catering” branch. ” and a decline in activity that continues in the “credit and insurance” branch. In 2021, GDP growth thus reached 3.9% in Brussels, 7% in Flanders and 6.3% in Wallonia. For 2022, the Bureau du Plan and the regional institutes estimate this growth at 2.1% in Brussels, 2.8% in Flanders and 2.5% in Wallonia, before slowing down in 2023 to 1.1% in Wallonia and 1 .3% in Flanders and Brussels. Over the period 2024-2027, GDP growth should average 1.1% per year in Brussels, 1.5% in Flanders and 1.3% in Wallonia.

.

Comments

0 comments

Leave a Comment

Your email address will not be published.