RaboResearch - Economic Research

Economic Update Dutch version

Country Update Belgium

Almost one-and-a-half year after the elections there has finally been a political breakthrough. With the announcement of harsh austerity measures in 2012 the new government hopes to reduce the budget deficit and thereby to regain market trust.

Economic Update Dutch version

Country Update Belgium

After relatively good performance in the past quarters, the European debt crisis seems to weigh on the Belgian economy. The sentiment of both consumers and producers dropped sharply since August. The yield on 10-year government bonds dropped to 3.7%.

Economic Update Dutch version

Country Update Belgium

After a strong 11H1 we expect growth to slow down in the coming quarters. As the growth of world trade is expected to weaken going forward, Belgium’s GDP growth in 11H2 will be weaker than in recent quarters.

Economic Update Dutch version

Economic Update Belgium

In spite of the political deadlock, the Belgian economy seems to keep up with the growth pace witnessed in 2010 (+2.1% y-o-y). For the current year we even foresee a slightly higher growth based on the very strong figure in the first quarter (1% q-o-q).

Economic Update Dutch version

Economic Update Belgium

As the export and the government sector step back gradually this year, all eyes are on the Belgian firms and households. Based on high producer confidence and a rising capacity utilisation rate, we expect businesses to increase their investments this year to expand production capacity.

Economic Update Dutch version

Economic Update Belgium

The moderate economic recovery of 2010, primarily driven by export growth, will probably continue this year. It remains to be seen to what extent domestic demand will be able to start supporting this recovery. Consumers and producers are rather optimistic, in spite of the political stalemate. However, the government will eventually be forced to start imposing budget cuts, which will suppress domestic demand growth.