On November 6, 2023, the Brussels Times reported that the latest Eurostat data reveals Belgium to have the sixth-highest average income in the European Union, despite the financial
challenges faced by many of its citizens.
According to the study, the median disposable income (what remains after all taxes have been deducted) per person in Belgium was 27,314 euros in 2022, surpassing the EU average of 19,083 euros. Belgium notably outperformed its neighboring countries, with incomes exceeding those of Germany (25,000 euros) and France (23,053 euros).
Luxembourg boasted the highest salaries in the EU (45,310 euros), followed by Denmark (33,260 euros) and the Netherlands (29,537 euros). Conversely, Bulgaria (5,378 euros) reported the lowest earnings, with Romania (5,512 euros) and Hungary (6,975 euros) in second and third place, respectively.
Purchasing Power Standards (PPS), an economic measure adjusting for price disparities between countries, were also considered. In PPS terms, Belgium ranked fourth in the EU with a median income of 24,142 PPS, following Luxembourg (33,214 PPS), the Netherlands (25,437 PPS), and Austria (25,119 PPS). Notably, one PPS holds the same purchasing power across all countries.
Despite relatively high incomes, many Belgians grapple with substantial financial difficulties. A survey conducted earlier this year by consumer rights group Test Achats found that 27% of Belgians had no money left for savings at the end of the month, up from 25% in April the previous year. The study also indicated that 57% considered their financial situation to be "significantly worse" than in 2021, and one in eight had recently sought assistance from friends and family to make ends meet.
Additionally, recent studies paint a relatively bleak economic outlook for Belgium. In September, the Central Economic Council (CEC) projected that wage growth in Belgium would be lower than previously expected compared to neighboring countries. Specifically, the CEC forecasted a 1.7% increase in salaries by the end of 2024, based on a reference year of 1996. This growth rate was significantly lower than the nearly three times higher growth (4.6%) predicted the previous year.
The CEC's report preceded another analysis published last month by the International Monetary Fund, which predicted that inflation in Belgium, eroding citizens' real incomes, would increase from 2.5% in the current year to over 4% by 2024. Photo by Lionel Allorge, Wikimedia commons.