Belgium

ECONOMICS


Belgium’s central geographic location and highly developed transport network have helped develop a well-diversified economy, with a broad mix of transport, services, manufacturing, and high tech. Service and high-tech industries are concentrated in the northern Flanders region while the southern region of Wallonia is home to industries like coal and steel manufacturing. Belgium is completely reliant on foreign sources of fossil fuels, and the planned closure of its seven nuclear plants by 2025 should increase its dependence on foreign energy. Its role as a regional logistical hub makes its economy vulnerable to shifts in foreign demand, particularly with EU trading partners. Roughly three-quarters of Belgium's trade is with other EU countries, and the port of Zeebrugge conducts almost half its trade with the United Kingdom alone, leaving Belgium’s economy vulnerable to the outcome of negotiations on the UK’s exit from the EU.
Belgium’s GDP grew by 1.7% in 2017 and the budget deficit was 1.5% of GDP. Unemployment stood at 7.3%, however the unemployment rate is lower in Flanders than Wallonia, 4.4% compared to 9.4%, because of industrial differences between the regions. The economy largely recovered from the March 2016 terrorist attacks that mainly impacted the Brussels region tourist and hospitality industry. Prime Minister Charles MICHEL's center-right government has pledged to further reduce the deficit in response to EU pressure to decrease Belgium's high public debt of about 104% of GDP, but such efforts could also dampen economic growth. In addition to restrained public spending, low wage growth and higher inflation promise to curtail a more robust recovery in private consumption.
The government has pledged to pursue a reform program to improve Belgium’s competitiveness, including changes to labor market rules and welfare benefits. These changes have generally made Belgian wages more competitive regionally, but risk worsening tensions with trade unions and triggering extended strikes. In 2017, Belgium approved a tax reform plan to ease corporate rates from 33% to 29% by 2018 and down to 25% by 2020. The tax plan also included benefits for innovation and SMEs, intended to spur competitiveness and private investment.

 

1990 2000 2010 2016
GNI, Atlas method (current US$) (billions) 193.42 266.9 522.09 483.17
GNI per capita, Atlas method (current US$) 19,400 26,040 47,920 42,640
GNI, PPP (current international $) (billions) 187.56 294.08 450.58 529.78
GNI per capita, PPP (current international $) 18,820 28,690 41,350 46,750
GDP (current US$) (billions) 206.43 237.9 483.55 467.55
GDP growth (annual %) 3.1 3.6 2.7 1.4
Inflation, GDP deflator (annual %) 2.8 2 1.9 1.6
Agriculture, forestry, and fishing, value added (% of GDP) .. 1 1 1
Industry (including construction), value added (% of GDP) .. 25 21 20
Exports of goods and services (% of GDP) 61 72 76 83
Imports of goods and services (% of GDP) 60 69 75 82
Gross capital formation (% of GDP) 24 24 23 24
Revenue, excluding grants (% of GDP) .. 42.1 40.1 38.6
Net lending (+) / net borrowing (-) (% of GDP) .. -0.1 -3.2 -2.7
States and markets
Time required to start a business (days) .. 56 4 4
Domestic credit provided by financial sector (% of GDP) .. 116.1 113.7 153.7
Tax revenue (% of GDP) .. 27.1 24.3 23.1
Military expenditure (% of GDP) 2.2 1.3 1.1 0.9
Mobile cellular subscriptions (per 100 people) 0.4 54.7 111.1 110.5
Individuals using the Internet (% of population) 0 29.4 75 86.5
High-technology exports (% of manufactured exports) .. 11 10 13
Statistical Capacity score (Overall average) .. .. .. ..
Global links
Merchandise trade (% of GDP) 115 154 165 165
Net barter terms of trade index (2000 = 100) .. 100 97 95
External debt stocks, total (DOD, current US$) (millions) .. .. .. ..
Total debt service (% of exports of goods, services and primary income) .. .. .. ..
Net migration (thousands) 107 220 259 240
Personal remittances, received (current US$) (millions) 3,583 4,005 10,351 10,126
Foreign direct investment, net inflows (BoP, current US$) (millions) .. 18,081 111,490 37,013