Economic growth challenged by some (old) fiscal challenges

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD 578.6bn (World ranking 25, World Bank 2022)
Population 11.7mn (World ranking 80, World Bank 2022)
Form of state Constitutional parliamentary monarchy
Head of government Alexander De Croo (PM, outgoing)
Next elections 2029, legislative
Updated in July 2024.
Strengths
  • Resilient economy through pandemic and energy crisis
  • Solid labor market and job creation
  • Private consumption remained supported by government measures and protected wages
  • Financial sector proves resilient, banking sector improved profitability and capital position
  • Strategically located at the heart of Europe, home of international institutions and workers
Weaknesses
  • High public debt ratio, no significant consolidation efforts after massive support during crises
  • Manufacturing sector suffering after strong performance in 2021-22 (linked to pharma)
  • Automatic wage indexation can pose fears of wage-price spiral and hamper competitiveness
  • Export-oriented country which is suffering in a weak demand environment
  • Political fragmentation persists

Trade structure by destination/origin

(% of total, annual 2022)

Exports Rank Imports
Germany 20.2%
1
20.5% Netherlands
Netherlands 14.1%
2
12.5% Germany
France 12.4%
3
10.4% France
United States 6.8%
4
6.3% United Kingdom
United Kingdom 5.1%
5
5.3% United States

Trade structure by product

(% of total, annual 2022)

Exports Rank Imports
Medicinal and pharmaceutical products 16.9%
1
13.6% Gas, natural and manufactured
Gas, natural and manufactured 10.8%
2
11.4% Medicinal and pharmaceutical products
Road vehicles 8.1%
3
10.1% Petroleum, petroleum products and related materials
Petroleum, petroleum products and related materials 8.0%
4
8.5% Road vehicles
Organic chemicals 3.8%
5
6.4% Organic chemicals