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No, No, and YES...!

No, not changing the timing belt doesn't effect performance or fuel economy of your car.

No, if it's not changed and if your Volvo engine is the single overhead cam type, it is a non-interference type engine and if you don't replace it then when the belt breaks, you'll be left by the side of the road, it's not really a roadside repair at several hours to replace....However being a non-interference engine it won't damage your engine when it does break.

Where it is a YES....If it's a dual overhead cam engine (like the 4 cylinder 16 valve) it is an interference engine. If you don't replace it at the recommended interval or risk not only ending up by the side of the road, when it does break you'll end up with an empty wallet to repair it.

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Q: Is engine affected if timing belt not changed on 1986 Volvo?
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