Monday, June 8, 2015

DNB expects sharp rise in disposable income – NU.nl

This is shown Monday from the semi-annual estimate of the central bank.

With real disposable incomes, the amount is meant that households can spend on goods and services, after adjustment for inflation. This includes wages, social benefits and pensions.

According to DNB growing that income this year by 3.2 percent. For 2016 and 2017 the central bank expects annual increases of 1.7 percent

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This differs greatly from Over the past five years. During that period, real disposable income on average by 0.8 percent per year.



Increase

The central bank expects a large increase, as employment grows and inflation low remains. Moreover there by revised rules less pension contributions are paid.

According to the central bank households adjust their spending gradually to their disposable income. The strong earnings growth this year will therefore not directly result in a corresponding increase in consumption. The consumption is due to the growth in income is therefore not only increase this year, but also in 2016 and 2017.



FNV

FNV chairman Ton Heerts thinks it is high time that the rebounding economic recovery translates into higher wages for workers. ” The companies goes a lot better and also the government budget improved significantly, ” said Heerts.

“That means space for investing in people and wage and income improvement of pensioners. Thus, everyone can spend more, and that gives an extra boost to economic growth ”

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By: NU.nl

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