The 3.6 point drop is the biggest recorded since September last year. The drop in confidence is evident in the four main branches of activity surveyed, although a bit less marked in construction and trade.

The financial health of companies did not deteriorate significantly in 2020. This finding confirms the success of the public policy measures and the financial interventions by companies themselves.

The slowdown in export growth can be largely explained by the drop in coronavirus vaccine sales. Imports have continued to grow strongly in the chemicals, mineral products and metals sector.

According to the NBB’s spring projections, the Belgian economy is temporarily expected to lose momentum not least because of the war in Ukraine and the strict coronavirus lockdowns in China. The energy shock is a clear setback for the Belgian economy, but it remains resilient and economic growth is forecast to gather pace again from the end of this year.

The ECB has announced that it will soon be raising its main interest rates for the first time in eleven years. Our expert explains the workings of long-term interest rates, which are going back up again after having fallen to a record low at the height of the coronavirus crisis. Historically speaking, interest rates are nevertheless still low, especially after correcting for inflation expectations.

As expected, Belgian economic growth remained strong in the previous quarter, but the economy is now expected to stagnate in the second quarter of 2022. The sharp rise in prices is dampening consumer confidence or at least causing a temporary loss of purchasing power, which is holding back household consumption. Investment is also on the decline.

The 3.6 point drop is the biggest recorded since September last year. The drop in confidence is evident in the four main branches of activity surveyed, although a bit less marked in construction and trade.