Retail Savings & Investments in Belgium: Coronavirus (COVID-19) Sector Impact

Retail Savings & Investments in Belgium: Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.

The pandemic is likely to have a significant impact on Belgium’s economy. The country’s GDP has been revised downward for 2020 due to the economic disruption caused by the outbreak. According to National Bank of Belgium and Federal Planning Bureau estimates, the country could lose up to €60bn ($67.36bn) in 2020 as a result of the Coronavirus. The decline will have an adverse impact on all sectors, including the wealth industry.

This report focuses on the impact of the Coronavirus outbreak on the Belgian economy and the country’s retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData’s pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.

Scope

- Belgian retail savings and investments are forecast to contract by 1.5% over the course of 2020 as the economy has almost come to a complete standstill thanks to the impacts of COVID-19. Retail equity and mutual fund holdings are expected to take the brunt of the economy’s slowdown, with respective declines of 24.6% and 12.4% anticipated.
- The decline in mutual fund holdings is forecast to be less pronounced due to relatively low exposure to equities, with equity funds accounting for a quarter of total funds.
- On the other hand, retail deposits and bond holdings are set to fare better than initially expected courtesy of a flight to safety away from risk assets.
- However, more pronounced declines in risk asset holdings mean GlobalData’s total retail holdings forecast for 2020 is 3.4 percentage points (pp) lower than before the onset of COVID-19.

Reasons to Buy

- Make strategic decisions using top-level revised forecast data on the Belgian retail savings and investments industry.
- Understand the key market trends, challenges, and opportunities in the Belgian retail savings and investments industry.
- Receive a comprehensive insight into the retail liquid asset holdings in Belgium, including deposits, mutual funds, equities, and bonds.