Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Eurozone Disposable Income to Recover to Pre-crisis Peak by Mid-2016, Says ING


News provided by

ING Group

12 Jan, 2016, 00:01 GMT

Share this article

Share toX

Share this article

Share toX

LONDON, January 12, 2016 /PRNewswire/ --

  •  Economist, Anthony Baert provides ING's outlook for household finances in the Eurozone

  •  Recovery remains weak and fragile but disposable income and household consumption is growing

  •  Income divergence between core and periphery countries is slowing, with disposable income of the periphery to grow faster than the core and largely driven by Spain

Prospects for household finances in the Eurozone are improving, with disposable income expected to reach the Q4 2009 peak by mid-2016, according to a new report released today by ING.

The report, 'Seven fat years, seven lean years', identifies how the finances of Eurozone households are emerging from the crisis in a radically different shape, with divergence between the core and periphery countries slowing.

Following the seven 'lean' years post-financial crisis, household disposable income has not yet fully recovered, but steady growth over the last two years is expected to continue into 2016 and, for the first time, surpass the pre-crisis 'fat' years' peak.

Providing ING's outlook for household finances across the Eurozone in 2016 and beyond, Economist Anthony Baert comments: 

"The recovery in the Eurozone remains weak and fragile. We expect it to continue in 2016, mostly supported by low oil prices, a weak euro and loose monetary policy. Now that monetary policy has become more proactive, bank balance sheets are healthier and many public deficits have been slashed to lower levels, both investment and government expenditure may contribute more to GDP. GDP growth should slightly accelerate over the forecasting horizon, from 1.5% in 2015 to 1.8% in 2018.

Disposable income 

"Encouragingly, disposable income in the Eurozone is forecasted to have grown by 1.7% in 2015 and is expected to expand at a similar pace in the coming years. This means that we will have reached the Q4 2009 peak by mid-2016, and exceed it by 4.3% by the end of 2018. Labour income will play an important role, and the adverse effect of higher inflation in the coming years will be offset by a stronger contribution from business income and dividends.

"Looking at the components, compensation of employees should remain the main driver of disposable income in the coming years. Employment growth is forecast to remain broadly stable at around 1% over the forecast horizon, which is still weaker than in the pre-crisis years. In 2015, average compensation received an exceptional boost from the introduction of minimum wages in Germany. But elsewhere considerable slack in the labour market remains, so it is hard to see an acceleration of wage growth.

"Household consumption in the Eurozone is forecast to grow at the same pace than disposable income in 2015 and 2016, but a little faster in 2017 and 2018, as household deleveraging abates.

Inflation 

"A last factor driving the relatively robust recovery of real household income is low inflation. The strong fall in oil prices has reduced households' energy bills substantially and is filtering through other consumer prices. Thanks to downward wage rigidity, which has hampered the adjustment of nominal wages to falling inflation, household purchasing power has been boosted throughout 2015. The favourable effect of falling oil prices is likely to remain important in 2016. However, once the impact of this fall fades away by the end of 2016, the gradual rise of inflation is expected to put some downward pressure on all real aggregates.

"All in all, disposable income is likely to be boosted by higher compensation of employees and lower inflation in 2015 and a good part of 2016. Afterwards, the adverse effect of higher inflation is expected to be offset by a stronger contribution of operating surplus, mixed income and distributed income of corporations.

Consumption 

"Consumption is expected to expand broadly in line with disposable income. As a result, the saving rate is forecast to remain stable in 2015 and 2016, and might tick down somewhat in 2017 and 2018. In the short run, compensating effects are projected to be at play. Some further deleveraging is expected to be compensated by strong confidence. In the medium term, household deleveraging is expected to fade as debt levels have been slashed to satisfactory levels, resulting in slightly stronger consumption in 2017 and 2018.

Spotlight on individual Eurozone countries (see table 1 below) 

"Q3 and Q4 2015 figures are expected to show that the income divergence between the core and the periphery has stopped. Moreover, disposable income of the periphery is projected to grow meaningfully faster than that in the core, mostly on the back of faster employment growth. That said, the better expected performance of peripheral households is essentially driven by Spain, while the pace of expansion in other peripheral countries is likely to remain sluggish. Income in the core countries should expand at a more even pace, except in Belgium, where wage moderation is temporarily weighing on average employee compensation."

The report, 'Seven fat years, seven lean years' is part of a series being produced for the Think Forward Initiative, a programme ING is working on, which aims to gain a deeper understanding of personal finance decision-making and use those insights to help people make decisions that are better for them, and ultimately better for society. A full copy of this report can be downloaded here.

Table 1: Eurozone forecasts

   
    %YoY unless indicated otherwise                       2015      2016    2017      2018
    Eurozone
    GDP                                                    1.5       1.6     1.8       1.8
    Disposable income                                      1.7       1.6     1.6       1.7
    Employment                                             0.9       1.0     1.0       0.9
    Consumption                                            1.7       1.6     1.7       1.9
    Saving rate (%)                                       12.7      12.7    12.6      12.4
    Germany
    GDP                                                    1.6       1.7     1.5       1.5
    Disposable income                                      1.9       1.6     1.5       1.5
    Employment                                             0.8       1.2     0.8       0.5
    Consumption                                            1.7       1.3     1.4       1.5
    Saving rate (%)                                       16.3      16.6    16.7      16.7
    France
    GDP                                                    1.2       1.6     1.8       2.1
    Disposable income                                      1.6       1.1     1.2       1.5
    Employment                                             0.3       0.4     0.7       1.0
    Consumption                                            1.5       1.2     1.7       2.1
    Saving rate (%)                                       14.2      13.8    14.9      15.5
    Italy
    GDP                                                    0.8       1.2     1.2       1.3
    Disposable income                                      0.8       1.3     1.4       1.5
    Employment                                             0.9       1.0     0.8       0.7
    Consumption                                            0.9       1.2     1.0       1.2
    Saving rate (%)                                       10.7      10.8    11.2      11.4
    Spain
    GDP                                                    3.2       2.7     2.3       1.9
    Disposable income                                      3.7       3.4     2.9       1.9
    Employment                                             2.3       2.5     2.3       2.0
    Consumption                                            3.2       3.5     2.9       2.1
    Saving rate (%)                                       10.3      10.4    10.5      10.3
    Netherlands
    GDP                                                    2.0       2.5     2.0       1.7
    Disposable income                                      1.7       3.0     1.6       1.5
    Employment                                             0.9       1.2     1.4       1.3
    Consumption                                            1.7       2.0     1.9       1.5
                                                                                      15.6

    Saving rate (%)                                       14.3      15.4    15.4
    Belgium
    GDP                                                    1.4       1.5     1.6       1.5
    Disposable income                                      1.2       0.7     1.5       1.4
    Employment                                             0.6       0.6     0.6       0.6
    Consumption                                            1.4       1.4     1.3       1.3
    Saving rate (%)                                       12.1      11.5    11.6      11.5
    Greece
    GDP                                                   -0.3      -0.8     1.6       1.8
    Disposable income                                     -0.9      -0.6     1.5       2.2
    Employment                                             0.4      -0.3     1.6       1.6
    Consumption                                            0.3      -1.2     1.5       1.3
    Saving rate (%)                                         NA        NA      NA        NA
    Portugal
    GDP                                                    1.4       1.2     1.3       1.2
    Disposable income                                      1.4       1.6     1.2       1.4
    Employment                                             1.2       1.4     1.3       1.3
    Consumption                                            2.7       2.2     1.4       1.3
    Saving rate (%)                                        4.9       4.4     4.2       4.3

Modal title

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.