Belgian Economic Growth Forecasts

Belgium's economy is projected to experience modest growth in 2024 and 2025, with a growth rate of 1.1% for 2024 and 1.3% for 2025. These figures represent a downward revision of 0.3% and 0.1% respectively from earlier forecasts. The economic slowdown is attributed to reduced consumer spending, struggling international trade, and fewer job opportunities than anticipated. Families in Belgium have been spending less than expected, contributing to the overall economic stagnation. The job market outlook is also concerning, with a significant decline in new job opportunities anticipated. In 2023, Belgium added 40,700 jobs, but projections for 2024 suggest only 15,800 new jobs will be created, followed by 24,700 in 2025. The job fulfillment rate is expected to remain stable at 72.1% for 2023 and 2024, with a slight increase to 72.2% in 2025. This stagnation in job creation is linked to weak business activity observed in the first half of the year. Inflation is another pressing issue, with predictions indicating it will rise to around 3.2% until the end of 2024, primarily due to the ongoing energy prices crisis. However, it is expected to fall below 2% after 2025 as government measures to reduce energy support take effect. The economic report highlights that not all older workers are retiring, as some younger retirees are filling temporary positions, impacting the job market dynamics. Overall, the economic forecast for Belgium reflects a challenging environment characterized by reduced growth, limited job creation, and rising inflation, which could have lasting implications for families and businesses in the country.