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.

High inflation is raising concerns about its impact on wages and costs. In Belgium, the rapid adjustment of wages as a result of automatic indexation mechanisms contrasts with the more gradual process elsewhere in the euro area. In both cases, however, productivity growth has not been sufficient to contain costs, which is putting pressure on prices.  

The Belgian financial sector is resilient, according to the NBB’s latest Financial Stability Report. The Bank is taking actions to ensure the sector’s future resilience.