Belgium city from above

Belgium GDP Q1 2024

Belgium: GDP growth stable in Q1

GDP growth was stable at Q4 2023’s 0.3% on a seasonally adjusted quarter-on-quarter basis in Q1 2024. On an annual basis, economic growth was steady at the prior quarter’s 1.3% in Q1.

Private consumption growth fell to 0.2% in Q1, marking the weakest expansion since Q2 2023 (Q4 2023: +0.5% s.a. qoq). Government consumption improved moderately to a 0.7% increase in Q1 (Q4 2023: +0.5% s.a. qoq). Meanwhile, fixed investment bounced back, growing 2.7% in Q1, contrasting the 6.3% contraction in the previous quarter. Meanwhile, net exports made a slight positive contribution. Exports of goods and services worsened, contracting 0.3% in Q1 (Q4 2023: +0.4% s.a. qoq). Conversely, imports of goods and services dropped at a more moderate rate of 0.4% in Q1 (Q4 2023: -0.9% s.a. qoq).

Analysts at the EIU commented on the outlook:

“We expect real GDP to expand by 1.1% in 2024, slowing from 1.4% in 2023. Automatic wage indexation will continue to support consumer spending power. However, higher borrowing costs, in line with the ECB’s higher interest rates in the first half of 2024, will partly constrain the impact on private consumption. The export-oriented economy (goods and services exports accounted for 87% of GDP in 2023) will feel the impact of sluggish external expansion through still-weak export growth and a loss of competitiveness due to wage indexation. Elevated uncertainty and macroeconomic risks stemming from the war in Ukraine will constrain growth in investment activity. Meanwhile, a less supportive construction industry will exert a drag on investment. Nevertheless, a very accommodative fiscal policy and a positive outlook for sectors such as energy infrastructure will all support growth in 2024.”

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