Steady activity to pick up only slightly in 2025-2026, challenged by fiscal woes

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

Last updated in January 2025.

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Form of state Constitutional parliamentary monarchy
Head of government Alexander De Croo (PM, outgoing)
Next elections 2029, legislative
Strengths
  • Moderate growth and resilience throughout the double crisis
  • Resilient labor market
  • Private consumption remains supported by wage-indexation mechanism
  • Resilient financial sector proves resilient, improved profitability and capital position of banking sector 
  • Strategically located at the heart of Europe, home to international institutions and workers
Weaknesses
  • Under strong EU fiscal scrutiny, given large public deficit and high public debt ratio; no significant consolidation efforts are foreseen in the short term
  • Automatic wage indexation translates into more persistent price pressures and hampers competitiveness
  • Export-oriented country suffering in a weak global demand environment
  • Political fragmentation persists

 

(% of total, 2023)
(% of total, annual2023)