Purchasing power has increased under Vivaldi, with one exception

Purchasing power has increased under Vivaldi, with one exception
Purchasing power has increased under Vivaldi, with one exception

However, no increase or decrease was observed for the lowest incomes, reports a study carried out by economists at the University of Ghent and published Thursday.

Economists Gert Peersman, Koen Schoors and Milan van den Heuvel calculated the evolution of purchasing power during the reign of the federal government led by Alexander De Croo, between October 2020 and March 2024, by analyzing data from bank transactions of 900,000 Belgian households.

Public finances: like Antonio Vivaldi, Belgium finished the legislature almost ruined

Over the entire inauguration, purchasing power increased by an average of 1.4%. This increase was even 3.2% in 2021 and 2022, but from February 2023, the average fell by 1.8 percentage points.

The decline observed since 2023 is explained by the fact that salaries and social assistance are indexed to the consumer price index. This was largely overestimated in 2021 and 2022, according to Ghent economists, leading to an “artificial increase in purchasing power”. From the start of 2023, the opposite has happened, with an underestimation of inflation. These effects can be explained by a significant difference between official statistics and real household energy costs. Energy bills increased much less in 2022 and decreased less in 2023 than the statistics suggest.

“Bart De Wever’s comments are ridiculous, no one believes in such a plan”

The increase in purchasing power mainly concerned higher incomes. If we divide incomes into five groups, we see that purchasing power has fallen for the last two quintiles. In the lowest 20% income group, purchasing power fell by 2.7% on average, while in the top quintile it fell by 0.6%.

-

-

PREV the fight of Sophie Rollet, this widow who made the American tire giant falter
NEXT Basketball: Basket Landes vice-champion of France after his defeat at Villeneuve d’Acsq