Economic trends
Following the 2009 global recession, the Belgian GDP again began to grow in 2010 but then slowed down in 2011 (1.9%) as a result of the debt crisis in the eurozone. Given the country's economy's particular vulnerability to external shocks, the prospects for 2012 are not optimistic.
The new government has set a target to reduce the budget deficit to zero by 2015. With a public debt of around 100% of GDP in 2012, deficit reduction is an imperative. Austerity measures have also been implemented, together with a planned reform of the labor market. A support plan for the banking system is also expected.
Belgium is a prosperous country and its GDP is among the highest in the world. Nevertheless, regional disparities remain strong; Wallonia faces a worrying problem of structural unemployment.
Main branches of industry
The Belgian economy is largely orientated towards services. In fact, the tertiary sector accounts for almost three fourths of the national wealth. Brussels, which is home to several European institutions, numerous diplomatic missions and different interest groups, has created an economy which is based essentially on services.
The industrial sector accounts for practically a fourth of the GDP. There are significant discrepancies between the three Belgian regions. While Flanders has succeeded in developing the second largest petro-chemical sector in the world, Wallonia is in the middle of restructuring, following the closure of several collieries and a large number of steel industries. Brussels distinguishes itself in the areas of telecommunication, software development and in pharmaceutical and automobile industry.
Agriculture contributes a small amount to the Belgian economy.
International trade
The Belgian economy is particularly open, foreign trade representing nearly 155% of GDP (WTO, average for 2008-2010). In addition to being an export champion, Belgium also plays an important role as a transit and distribution center for the other countries of the European Union.
Belgium's trade deficit, which had been gradually worsening since 2002, reached a colossal degree under the effects of the global recession of 2009. After it slightly recovered in 2010, the situation again worsened in 2010, the exports decreasing more quickly than imports. The situation is not expected to improve in 2012, due to the unfavorable situation in the eurozone.
Belgian international trade is primarily done within the European Union (nearly 80% of exports and imports). Its main trading partners are the Netherlands, Germany, France, Great Britain and the United States.
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Last updates: May 2012
