Belgium city from above

Belgium GDP Q2 2020

Belgium: Economy enters recession in Q2

GDP shrank 12.1% on a seasonally-adjusted quarter-on-quarter basis in Q2, following Q1’s 3.5% decline and marking the sharpest contraction on record. The economy was hit hard by the pandemic and related restrictive measures.

Household spending plunged 12.7% in Q2, marking a record drop (Q1: -6.4% s.a. qoq), while public spending fell 8.3% (Q1: -3.5% s.a. qoq). Moreover, fixed investment collapsed, diving 18.2% in Q2, compared to the 3.9% decrease clocked in Q1.

Exports of goods and services declined 13.3% in the second quarter, after the first quarter’s 1.7% contraction. Meanwhile, imports of goods and services declined 13.9% in Q2 (Q1: -2.5% s.a. qoq).

On an annual basis, economic activity dropped 14.4% in Q2, down from Q1’s 2.4% decrease.

There should be some recovery throughout the rest of the year. However, political uncertainty and a resurgence of Covid-19 cases pose downside risks. Commenting on the outlook, Daniela Ordonez, chief French economist at Oxford Economics, stated:“We continue to expect a marked post-lockdown rebound in Q3, but the pace should then cool as the ongoing political deadlock will prevent meaningful fiscal support to be deployed swiftly. […] Risks remain on the downside as the threat of a second wave of infections may be looming.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest