Economy Overview
Belgium’s central geographic location and highly developed transport network have helped develop a well-diversified economy, with a broad mix of transport, services, manufacturing, and high tech. Service and high-tech industries are concentrated in the northern Flanders region while the southern region of Wallonia is home to industries like coal and steel manufacturing. Belgium is completely reliant on foreign sources of fossil fuels, and the planned closure of its seven nuclear plants by 2025 should increase its dependence on foreign energy. Its role as a regional logistical hub makes its economy vulnerable to shifts in foreign demand, particularly with EU trading partners. Roughly three-quarters of Belgium's trade is with other EU countries, and the port of Zeebrugge conducts almost half its trade with the United Kingdom alone, leaving Belgium’s economy vulnerable to the outcome of negotiations on the UK’s exit from the EU.; Belgium’s GDP grew by 1.7% in 2017 and the budget deficit was 1.5% of GDP. Unemployment stood at 7.3%, however the unemployment rate is lower in Flanders than Wallonia, 4.4% compared to 9.4%, because of industrial differences between the regions. The economy largely recovered from the March 2016 terrorist attacks that mainly impacted the Brussels region tourist and hospitality industry. Prime Minister Charles MICHEL's center-right government has pledged to further reduce the deficit in response to EU pressure to decrease Belgium's high public debt of about 104% of GDP, but such efforts would also dampen economic growth. In addition to restrained public spending, low wage growth and higher inflation promise to curtail a more robust recovery in private consumption.; The government has pledged to pursue a reform program to improve Belgium’s competitiveness, including changes to labor market rules and welfare benefits. These changes have generally made Belgian wages more competitive regionally, but have raised tensions with trade unions, which have called for extended strikes. In 2017, Belgium approved a tax reform plan to ease corporate rates from 33% to 29% by 2018 and down to 25% by 2020. The tax plan also included benefits for innovation and SMEs, intended to spur competitiveness and private investment.;
Agriculture Products
sugar beets, fresh vegetables, fruits, grain, tobacco; beef, veal, pork, milk
Industries
engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, pharmaceuticals, base metals, textiles, glass, petroleum
Industrial Production Growth Rate
0.2% (2017 est.); country comparison to the world: 168;
Labor Force
5.324 million (2017 est.); country comparison to the world: 79;
Unemployment Rate
7.1% (2017 est.); 7.9% (2016 est.); country comparison to the world: 108;
Population Below Poverty Line
15.1% (2013 est.);
Household Income or Consumption by Percentage Share
Lowest 10%: 28.4% (2006)
Highest 10%: 28.4% (2006)
Distribution of Family Income Gini Index
25.9 (2013 est.); 28.7 (1996); country comparison to the world: 150;
Budget
Revenues: 253.5 billion (2017 est.)
Expenditures: 258.6 billion (2017 est.)
Public Debt
103.4% of GDP (2017 est.); 106% of GDP (2016 est.); note: data cover general government debt and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions; general government debt is defined by the Maastricht definition and calculated by the National Bank of Belgium as consolidated gross debt; the debt is defined in European Regulation EC479/2009 concerning the implementation of the protocol on the excessive deficit procedure annexed to the Treaty on European Union (Treaty of Maastricht) of 7 February 1992; the sub-sectors of consolidated gross debt are: federal government, communities and regions, local government, and social security funds; country comparison to the world: 13;
Central Bank Discount Rate
0% (31 December 2017); 0% (31 December 2010); note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area; country comparison to the world: 148;
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$240.5 billion (31 December 2017 est.); $198 billion (31 December 2016 est.); note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders; country comparison to the world: 22;
Stock of Broad Money
$240.5 billion (31 December 2017 est.); $198 billion (31 December 2016 est.); country comparison to the world: 22;
Stock of Domestic Credit
$711.3 billion (31 December 2017 est.); $684.8 billion (31 December 2016 est.); country comparison to the world: 20;
Market Value of Publicly Traded Shares
$414.6 billion (31 December 2015 est.); $378.5 billion (31 December 2014 est.); $374.3 billion (31 December 2013 est.); country comparison to the world: 24;
Reserves of Foreign Exchange and Gold
$26.16 billion (31 December 2017 est.); $24.1 billion (31 December 2015 est.); country comparison to the world: 54;
Debt External
$1.281 trillion (31 March 2016 est.); $1.214 trillion (31 March 2015 est.); country comparison to the world: 15;
Stock of Direct Foreign Investment at Home
$1.035 trillion (31 December 2017 est.); $1.054 trillion (31 December 2016 est.); country comparison to the world: 11;
Stock of Direct Foreign Investment Abroad
$1.159 trillion (31 December 2017 est.); $1.016 trillion (31 December 2016 est.); country comparison to the world: 12;
Exchange Rates
euros (EUR) per US dollar -; 0.885 (2017 est.); 0.903 (2016 est.); 0.9214 (2015 est.); 0.885 (2014 est.); 0.7634 (2013 est.);
