Belgium's economy is expected to grow at around 1% in 2020-21. External factors are expected to slow down exports and business investment, despite supportive financing conditions. Belgium's private consumption on the other hand is expected to be more resilient on the back of past tax cuts and wage growth that will increase household disposable income. The job market in Belgium is set to remain tight, with the unemployment rate at 5.4% at the end of 2021.
Inflation in Belgium is expected to be around 1.6% by the end of 2021. The main economic risks for Belgium include a further slowdown in the euro area and uncertainty related to Brexit, which could adversely affect economic activity, notably in Flanders, which has close trade ties to the United Kingdom.
ICT, transport, travel and tourism, insurance and finance, packaged medicaments, serums and vaccines, cars, refined petroleum oils, medical instruments, diamonds, machinery and textiles are major industries of Belgium. In 2017, Agriculture industry contributed 0.70% to GDP of Belgium. Manufacturing had a share of 22.10% while services industry had a share of 77.20% of GDP in 2017.
In 2017, Services industry exports was valued at USD 120 billion for Belgium. Electronics export accounted for USD 14.30 billion, machinery for USD 47.8 billion, vehicals for USD 49.6 billion, chemicals for USD 129 billion, metals for USD 33.7 billion, minerals for USD 38.9 billion, stones for USD 23.3 billion, textiles for USD 23.2 billion and agriculture for USD 56 billion in 2017.
Belgium, officially Kingdom of Belgium, is a federal monarchy in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters as well as those of several other major international organisations such as NATO. Belgium covers an area of 11,787 square miles, and its capital and largest city is Brussels.
Belgium will have estimated population of 11.47 million in the year 2019 and expected to reach 11.77 million by 2024. Belgium’s 4.927 million population is expected to be employed in 2019 and the unemployment rate is expected to be 5.9% of total labor force.
Belgium’s real gross domestic product (GDP) is expected to be around Euro 443.699 billion in 2019 whereas the nominal GDP is expected to be Euro 465.054 billion. This will result in GDP deflator 104.813. Per capita GDP is estimated to be around USD 46366.40 whereas purchasing power parity (PPP) based per capita GDP is estimated to be at USD 49479.83. The output gap for Belgium in 2019 is expected to be at 0.168% of the potential GDP.
In 2019, Belgium government’s revenue is expected to be Euro 235.653 billion whereas the expenditure is expected to be Euro 241.169 billion. This will result in Belgium government’s net lending / borrowing negative at Euro 5.516 billion in 2019 indicating that enough financial resources were not made available by the government to boost economic growth.
The current account balance for Belgium is estimated to be at USD 1.756 billion for the year 2019 and is expected to decline at a CAGR of 3.75% and reach USD 2.758 by 2024. This positive current account balance indicates the Belgium is a net lender to the whole world.
Belgium is ranked 46 among 190 economies in the ease of doing business, the rank of Belgium deteriorated to 46 in 2019 from 45 in 2018. Ease of Doing Business in Belgium averaged 35.75 from 2008 until 2019, reaching an all-time high of 52 in 2017 and a record low of 20 in 2008.
*If Applicable.