Brussels: Europe and the Arabs
Regarding wealth inequality in Belgium, the top 1% of Belgians own as much wealth as the poorest 75% of the country's population combined. This is what the newspapers De Tijd and L'Echo reported, based on a study conducted by economist Arthur Apostille at Ghent University (UGent). Other media outlets, including the Belgian daily newspaper Nieuwsblad, published it.
The study is based on inheritance tax returns and compares the assets of adults, not families.
According to Apostille, wealth inequality declined significantly in the 20th century. The share of the richest 1% of total wealth fell from over 40% in the 1930s to around 20% in the 1990s.
In the 21st century, wealth inequality remained roughly stable. In 2022, the richest 10% owned 56% of total net wealth (assets minus debts). The share of the richest 1% reached 22%. This is roughly equivalent to the share of the poorest 75% of individuals combined. Wealth inequality in Flanders is close to the Belgian average. In Brussels, the inequality is even greater, while in Wallonia it is lower.
Men are richer (and poorer) than women.
Men have a higher net worth than women. The difference between them is greatest in older age groups. Furthermore, it is noticeable that men are overrepresented in both the highest and lowest wealth categories. Among middle-income earners, women constitute a significant proportion of the population.
Surprisingly, Oposteel's research reached a different conclusion than the study published by the National Bank at the beginning of last year. Who said wealth inequality has decreased slightly since 2011? The share of the richest 10% of households fell from 59% to 55% between 2011 and 2023.
According to the National Bank, Belgian households are significantly wealthier than the average household in the eurozone, with an average wealth of €555,000, or nearly nine times their annual income. But wealth is distributed unevenly. In terms of inequality, Belgium falls into the middle category, although "it is particularly difficult for certain socioeconomic groups to build wealth."
In a new study, the National Budget Bank focused on household wealth and inequality, a topic that often ends up on the agenda. The bank therefore looked at household net worth, which consists of financial resources plus property and vehicles, for example, minus outstanding debt, such as a loan.
At the end of 2022, Belgian households' total net worth was estimated at an average of €555,000. This makes us look very wealthy compared to the eurozone. Net worth is about nine times annual income. In this respect, we fare better than most countries. Only Luxembourg scores relatively higher, while Spain scores slightly higher. Half of Belgian household assets are made up of property, compared to the eurozone average of 59%.
In terms of the inequality in the distribution of that wealth, Belgium falls into the middle group. Inequality is slightly lower in the Netherlands, while in France and Germany in particular, inequality is higher. Austria has the highest level of inequality, and Malta the lowest.
Vulnerable Groups
Women, young people, people with low education, people in low-skilled jobs, single-parent households, single mothers, people with low incomes, and people without homes are, on average, less prosperous than other groups in Belgium. Anyone who combines several of these characteristics is "particularly vulnerable in our society." Four groups perform particularly poorly in this regard: single-parent households, single mothers in particular, low-income households, and households without homes.
Belgium performs well in terms of average wealth and ranks average in terms of wealth inequality. However, underlying the overall picture are vulnerabilities affecting several specific population groups, according to the study. "Because home ownership significantly reduces wealth inequality, the analysis provides a rationale for housing policies that facilitate home ownership for less wealthy households."