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Strategic Treasury

Belgium

The economy of Belgium The macroeconomic performance of the Belgian economy has, in many respects, been remarkable over the past couple of years: growth has picked up, inflation has remained low, the current-account surplus has widened, and employment has increased. Moreover, fiscal consolidation has continued at a sustained pace, and Belgium has qualified for EMU – the overriding priority of the Belgian authorities. But these achievements should not lead to complacency: the debt-to-GDP ratio is still extremely high and must be reduced rapidly; the ‘quality’ of public spending needs to be improved, partly because the burden of fiscal consolidation has in the past fallen disproportionately on public investment; and, although the economy is moving closer to its potential, the number of persons on welfare remains large.

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