Belgium

Capital: Brussels

Local time:
It is %T:%M %A in Brussels

Exchange rate on :

GDP growth rate: 1.6% in 2012

FDI stock: 748 110 million USD in 2007

Country risk: See the country risk analysis from Belgium provided by Ducroire.

Economic trends

After four years of vigorous growth, the economy was hit head-on by the international crisis during the second quarter of 2008. At the end of 2008, economic activity suffered an unprecedented reduction from the impact of the financial crisis and the decline in global trade. In effect, the crisis engendered the bankruptcy of the financial institutions and in particular the Fortis group, which had to be nationalized. The economy benefited from the recovery of activities on the European Union level, monetary support conditions and the beneficial effects of multi-annual tax and employment market reforms that the government put in place. The employment situation is expected to deteriorate and the use of the manpower remains relatively low. Economically, Belgium does not expect a revival before 2012, following a most chaotic 2009 year. Direct foreign investment slows down due to the tightening of credit and loss of confindence by consummers and companies. As for inflation, it follows a downward trend. In the meantime, the political tensions do not seem to be getting resolved.

Main branches of industry

Agriculture contributes a small amount to the Belgian economy.
The industrial sector accounts for practically a fourth of the GDP. There are significant discrepancies between the three Belgian regions in this field; Flanders, Wallonia and the capital, Brussels. If 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 collieries and a large number of steel industries.
Currently, the Belgian economy is more orientated towards services. In effect, the tertiary sector accounts for almost three fourths of the national wealth. Brussels which domiciles big European organizations, a number of diplomatic missions and different interest groups, has created an economy which is based essentially on services.

International trade

Belgium's trade deficit is gradually worsening. Belgian international trade is primarily done within the European Union (nearly 80% of exports and imports). More than half of Belgium's GNP stems from foreign sales, which is one of the highest percentages in the industrialized nations. In addition to being an export champion, Belgium also plays an important role as a transit and distribution center for other European Union member countries.

Learn more

For more information on Belgium

The Country Profiles of the Foreign and Commonwealth Office

Countries information of the UK Trade and Investment Website

For more international news

Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website