Consequently, as German interest rates rose after 1990, Belgian rates have increased and contributed to a decline in the economic growth rate. In May 1990, the government linked the Belgian franc to the Deutsche Mark, primarily through closely tracking German interest rates. Economic growth rose from 2% in 1984 to a peak of 4% in 1989. Consequently, the 1980–82 recession shook Belgium to the core-unemployment mounted, social welfare costs increased, personal debt soared, the government deficit climbed to 13% of GDP, and the national debt, although mostly held domestically, mushroomed.Īgainst this grim backdrop, in 1982, Prime Minister Martens' center-right coalition government formulated an economic recovery program to promote export-led growth by enhancing the competitiveness of Belgium's export industries through an 8.5% devaluation. The early 1980s saw the country facing a difficult period of structural adjustment caused by declining demand for its traditional products, deteriorating economic performance, and neglected structural reform. In the 1980s and 1990s, the economic center of the country continued to shift northwards to Flanders with investments by multinationals ( Automotive industry, Chemical industry) and a growing local Industrial agriculture (textiles, food). The older, traditional industries of Wallonia, particularly steel industry, began to lose their competitive edge during this period, but the general growth of world prosperity masked this deterioration until the 19 oil price shocks and resultant shifts in international demand sent the economy into a period of prolonged recession. firms played a leading role in the expansion of light industrial and petrochemical industries in the 1960s and 1970s. įoreign investment contributed significantly to Belgian economic growth in the 1960s. The postwar boom years, enhanced by the establishment of the European Union and NATO headquarters in Brussels, contributed to the rapid expansion of light industry throughout most of Flanders, particularly along a corridor stretching between Brussels and Antwerp, which is the second largest port in Europe after Rotterdam.
When Belgium emerged from World War II with its industrial infrastructure relatively undamaged thanks to the Galopin doctrine, the stage was set for a period of rapid development, particularly in Flanders. This disparity began to fade during the interwar period. History In the twentieth century Evolution of the Belgian GDPįor 50 years through World War II, French-speaking Wallonia was a technically advanced, industrial region, with its industry concentrated along the sillon industriel, while Dutch-speaking Flanders was predominantly agricultural with some industry, mainly processing agricultural products and textiles. In 2021, Belgium's public debt was about 108% of the country's gross domestic product (GDP). About three-quarters of its trade is with other EU countries.īelgium began circulating the euro currency in January 2002. One of the founding members of the European Community, Belgium strongly supports deepening the powers of the present-day European Union (EU) to integrate European economies further. Belgium's trade advantages are derived from its central geographic location and a highly skilled, multilingual, and productive work force. With exports equivalent to over two-thirds of GNP, Belgium depends heavily on world trade. Despite the heavy industrial component, services account for 74.9% of Belgium's GDP, while agriculture accounts for only 1% of Belgium's GDP. Nonetheless, most traditional industrial sectors are represented in the economy, including steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics, and machinery fabrication. Except for its coal, which is no longer economical to exploit, Belgium has few natural resources other than fertile soils. Belgium imports raw materials and semi-finished goods that are further processed and re-exported. īelgium's industry is concentrated mainly in the populous region of Flanders in the north, around Brussels and in the two biggest Walloon cities, Liège and Charleroi, along the Sillon industriel. It has since developed a highly-developed transportation infrastructure made up of ports (most notably the Port of Antwerp), canals, railways, and highways, in order to integrate its industry with that of its neighbours. Belgium was the first European country to join the Industrial Revolution in the early 19th century.
īelgium's economy has capitalised on the country's central geographic location, and has a well-developed transport network, and diversified industrial and commercial base. The economy of Belgium is a highly developed, high-income, mixed economy. All values, unless otherwise stated, are in US dollars.
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