IDEAS home Printed from https://ideas.repec.org/a/nbb/ecrart/y2011mseptemberiiip47-58.html
   My bibliography  Save this article

Developments in private consumption over the past three years

Author

Listed:
  • V. Baugnet

    (National Bank of Belgium, Research Department)

  • L. Dresse

    (National Bank of Belgium, Research Department)

Abstract

Belgium weathered the 2008-2009 recession relatively well compared to the euro area as a whole and most of its constituent economies. In that context, the article sheds light on the interactions between the general economic situation and private consumption during the recession and in the recent recovery phase. As is generally the case during recessions, private consumption expenditure tended to decline to a lesser degree than general economic activity in Belgium in 2008-2009. The fall in private consumption expenditure turned out to be rather limited, especially when one considers the then plummeting economic activity. The two main avenues through which the crisis affected consumer spending were the erosion of people’s financial assets, and a considerable rise in uncertainty in late 2008 and early 2009. However, these effects faded away during the course of 2009. The resilience of private consumption in Belgium – which is also noticeable when compared internationally – can be related to the resilience of employment, which supported households’ disposable income. In addition, the sound situation of households and firms and the absence of great structural imbalances prior to the crisis supported general economic activity. In the future, maintaining an economic context free of serious imbalances, including a sustainable path for public finances, is crucial to favour a steady development of private consumption, contributing to balanced economic growth, income generation and job creation.

Suggested Citation

  • V. Baugnet & L. Dresse, 2011. "Developments in private consumption over the past three years," Economic Review, National Bank of Belgium, issue ii, pages 47-58, September.
  • Handle: RePEc:nbb:ecrart:y:2011:m:september:i:ii:p:47-58
    as

    Download full text from publisher

    File URL: https://www.nbb.be/doc/oc/repec/ecrart/ecorevii2011_h3.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. J. De Mulder & M. Druant, 2011. "The Belgian labour market during and after the crisis," Economic Review, National Bank of Belgium, pages 89-104.
    2. Jeanfils, Philippe & Burggraeve, Koen, 2008. ""NONAME": A new quarterly model for Belgium," Economic Modelling, Elsevier, vol. 25(1), pages 118-127, January.
    3. A. Bruggeman, 2008. "The incomes and financing balance of individuals and companies," Economic Review, National Bank of Belgium, pages 75-91.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:nbb:ecrart:y:2017:m:june:i:i:p:43-59 is not listed on IDEAS

    More about this item

    Keywords

    Private consumption; households; wealth effect; savings rate;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbb:ecrart:y:2011:m:september:i:ii:p:47-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/bnbgvbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.