According to the National Bank’s latest projections, the Belgian economy should continue to grow at a relatively steady pace. Domestic demand is set to moderate, but net exports are expected to make a gradually less negative contribution to growth. Inflation is forecast to fall again. The labour market weakened slightly faster than expected but should gradually pick up again.

In the latest post on our blog, NBB statisticians Martine Druant and Luc Monseu use a matrix to map financial flows between economic sectors for 2023. For example, the issuance of a new one-year State note caused households to shift €22 billion from bank deposits to the government.

On 6 June, the Governing Council decided to lower the three key ECB interest rates by 25 basis points. 

Read more on this in the latest Business Cycle Monitor.

Belgium’s GDP rose by 0.3% in the first quarter of 2024. Value added was up by 0.1% in the manufacturing industry and by 0.4% in the services sector, while it slipped by 0.2% in the construction sector.

Economic growth is likely to remain stable in the near term, while employment growth should recover. Inflation will continue to fall.

Business confidence rose slightly in May, partially cancelling out the setback seen in April. Businesses also confirmed a further easing of credit conditions last month. 

For the second month in a row, consumer confidence weakened slightly. This is mainly due to a worsening of expectations about the general economic situation in Belgium.