Belgium Economic Outlook
June 30, 2020The economy contracted even more sharply in the second quarter, after shrinking at the fastest pace on record in the first quarter due to Covid-19. Industrial production crashed by nearly a quarter in April as the full weight of social distancing measures and closure of non-essential activities took hold. Moreover, household spending and fixed investment are set to have fallen at a steeper rate as suggested by record-low business confidence and depressed consumer sentiment in the quarter. In politics, the special powers assigned to the emergency government of Prime Minister Sophie Wilmès are set expire at the end of June unless Parliament extends them to the end of September. Meanwhile, discussions to form a federal government are ongoing and the risk of new elections is elevated given the plethora of political parties remain at loggerheads over key policy issues.
Belgium Economic GrowthThe economy is set to contract this year as a result of the health crisis. Fixed investment is likely to fall on depressed sentiment and the uncertain length of the pandemic, while downbeat external demand and falling tourism should weigh on exports. Meanwhile, the fiscal deficit is set to jump this year, putting pressure on politicians to curtail spending ahead. FocusEconomics analysts see the economy contracting 7.5% in 2020, which is down 0.2 percentage points from last month’s forecast. In 2021, they see it expanding 4.9%.
Belgium Economy Data
5 years of Belgium economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.10||0.15 %||Dec 31|
|Exchange Rate||1.12||0.65 %||Dec 31|
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Belgium Economic News
July 27, 2020
The consumer confidence indicator produced by the National Bank of Belgium (NBB) dipped from minus 19 in June to minus 20 in July.
July 14, 2020
Industrial production dropped 13.1% in May, following April’s 24.6% nosedive, which had marked the sharpest decline on record.
June 10, 2020
Industrial production slid 23.5% on an annual basis in April (March: -3.2% year-on-year).
May 29, 2020
GDP shrank 3.6% on quarter-on-quarter seasonally-adjusted basis in the first quarter, contrasting Q4 2019’s 0.5% expansion and marking the sharpest contraction on record.
May 25, 2020
The consumer confidence indicator produced by the National Bank of Belgium (NBB) rose from minus 26 in April to minus 23 in May.