SafekipediaEconomy of Belgium
Adapted from Wikipedia · Adventurer experience
Belgium has a highly developed, high-income, mixed economy. It is known for its strong system that helps its people.
Belgium was one of the first in Europe to have the Industrial Revolution in the 1800s. This helped it become an important economic leader.
The country’s central location in Europe makes it easy for goods to move. Belgium has a great transport network, with big ports like the Port of Antwerp, canals, railways, and highways. This helps Belgium trade with its neighbors.
Most of Belgium’s economy comes from services. It also has strong industries in Flanders and cities like Liège and Charleroi. Belgium does not have many natural resources except fertile soil. It imports materials and makes products to sell worldwide.
Belgium trades a lot with other countries, especially in the European Union. This trade helps the Belgian economy stay strong.
History
In the twentieth century
For 50 years through World War II, the French-speaking area of Wallonia had many factories along the sillon industriel. The Dutch-speaking area of Flanders had mostly farms, with some factories making food and clothes. These differences started to even out during the years between the world wars.
After World War II, Belgium’s factories were still standing, which helped the country grow quickly, especially in Flanders. Growth was helped by the European Union and NATO putting their main offices in Brussels. Light factories grew fast across Flanders, especially between Brussels and Antwerp, which is Europe’s second biggest port after the port of Rotterdam.
Foreign money helped Belgium’s economy grow in the 1960s. American companies helped build many light factories and chemical plants during the 1960s and 1970s.
The older factories in Wallonia, like the steel industry, started to struggle during this time. But the whole world was doing well, so the problems weren’t very clear until oil prices shot up and changed what people wanted to buy. This led to a long time of slow growth.
In the 1980s and 1990s, more money went into Flanders. Big companies from other countries built cars and chemicals there, and local farms grew more food and clothes.
The early 1980s were hard for Belgium. People bought less of what Belgium made, and the country’s money problems got worse. From 1980 to 1982, unemployment went up and costs for helping people rose.
In 1982, the leader of Belgium made a plan to help the economy grow by selling more things to other countries. This helped Belgium’s factories become better at making things people wanted to buy. The economy grew from 2% in 1984 to 4% in 1989. In May 1990, Belgium tied its money to Germany’s, which caused some problems later.
On 1 May 1998, Belgium joined the European Monetary Union.
In the twenty-first century
Belgium changed from the Belgian franc to the euro as its money after 1 January 2002. Belgium’s income per person is among the highest in the world. In 2008, the average income was $37,500. The government has had trouble balancing its budget, and the country’s debt stayed high.
In 2009, during a big world economic problem, Belgium’s economy grew less, and more people lost their jobs.
COVID-19 Pandemic
Economic Policy & Impact of COVID-19
During the Covid-19 Pandemic, Belgium closed some businesses and asked people to work from home. This hurt many places, especially entertainment, shops that don’t sell food, and hotels. Other areas, like government jobs and schools, also lost some money. All together, Belgium’s economy shrank in 2020.
Shipping and car factories also did worse.
People’s incomes went down because of Covid-19. Many people lost their jobs, and overall incomes dropped in 2020. Many people started working from home instead of going to a job.
Economic Policy of COVID-19
Belgium helped people and businesses with several plans. They made unemployment help last longer and paid more money to people who lost jobs. Because of these plans, Belgium’s debt grew in 2021.
Trade unions
Main article: List of trade unions in Belgium
About 65% of workers in Belgium belong to a union, one of the highest rates in the world. Only countries in Scandinavia have more. The biggest union is the Christian democrat Confederation of Christian Trade Unions (ACV-CSC). The second biggest is the socialist General Federation of Belgian Labour (ABVV-FGTB). The third is the liberal union General Confederation of Liberal Trade Unions of Belgium (ACLVB-CGSLB). There are also smaller unions for special jobs or areas.
Trade
Belgium trades a lot with other countries in the European Union, about 80% of its trade. Belgium also wants to trade more with countries outside the EU. The government wants trade to be open and fair.
The government wants more foreign companies to invest in Belgium. This helps create jobs. Regions like Flanders, Brussels, and Wallonia offer special benefits to attract these companies. Many foreign businesses have set up in Brussels since 1989, especially because of the EU’s single-market program.
Employment
Belgium has a system to help people who lose their jobs. This includes medical care and money to help with living costs. The system grew a lot in the 1950s and 1960s but became harder to afford when the economy slowed down in the 1970s.
In 2008, about 6.5% of people in Belgium did not have jobs. Most people, around 80%, work in jobs like shops, banks, and hospitals. About 19% work in factories and other industries, and only 1% work on farms. As more people get older, there are big discussions about how to manage money for pensions and other benefits.
Budget
Belgium is a wealthy country. For many years, the government spent more money than it earned. In the 1970s, to deal with rising oil prices, the government hired extra workers and helped struggling industries. By the late 1980s, this created a lot of debt — about equal to the country’s entire economy.
In 1992, when Europe agreed to use a common currency, Belgium had to cut spending. It succeeded, and by 2001, when the Euro was introduced, Belgium’s spending was very close to its income. Since then, Belgium has usually balanced its budget, though it spent more again in 2009. Even with this, Belgium’s debt is still high, but it has been slowly decreasing compared to the size of its economy.
Regional differences
Belgium's economy changes a lot depending on where you are in the country. The Flemish region, the Walloon region, and the city of Brussels all have different economic activities and challenges.
Brussels, as the capital of the European Union, focuses mainly on services and hosts many important companies and government offices. Flanders has major ports like Antwerp, which is very important for trading goods. Wallonia used to be famous for making steel but now has a mix of industries including logistics. Each area has its own strengths and opportunities.
Brussels
Brussels is very focused on services because it is the capital of the European Union. Many big companies have their main offices here, and many important European institutions are based in the city. Brussels also has many people who commute from nearby areas. The city does well because of the skills of its workers, though there are still challenges with jobs available.
Flanders
In 2004, the port of Antwerp was one of the biggest ports in Europe for moving goods. Antwerp is also very important for trading diamonds and cars. The port of Bruges-Zeebrugge is growing fast and is very important for moving cars and natural gas. Bruges is also a popular place for tourists to visit because of its old buildings. The port of Ghent is home to many big companies and also has a lot of students and research activities. Ghent is also known for growing begonias, which are plants that Belgium exports around the world.
Wallonia
Liège used to be a big place for making steel, and some of that industry is still important today. Liège is also known for making guns and has companies that make airplane engines and space technology. The city is a key place for moving goods and has an important airport for cargo. Charleroi has industries like steel, glass, and chemicals, and it is also famous for publishing comic books.
| Rank | NUTS region | Per capita in Euros | % of EU average |
|---|---|---|---|
| 1 | Brussels | 69,500 | 196 |
| 2 | Flemish Region | 43,800 | 124 |
| 3 | Walloon Region | 30,700 | 87 |
Data
The table below shows important economic numbers from 1980 to 2021, with some guesses for 2022 to 2027. When inflation is less than 5%, it is shown in green.
| Year | GDP (in Bil. US$PPP) | GDP per capita (in US$ PPP) | GDP (in Bil. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Unemployment (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 106.1 | 10,769.0 | 123.5 | 12,529.3 |  4.4% |  6.7% | 8.3% | 76.8% |
| 1981 | 115.8 | 11,745.0 |  102.2 | 10,366.1 | -0.3% | 7.6% | 10.0% | 89.7% |
| 1982 | 123.7 | 12,556.1 | 90.0 | 9,128.6 | 0.6% | 8.7% | 11.5% | 99.6% |
| 1983 | 129.0 | 13,083.9 | 85.0 | 8,626.2 | 0.3% | 7.7% |  10.7% | 110.3% |
| 1984 | 136.9 | 13,897.6 | 81.2 | 8,244.8 | 2.5% | 6.3% | 10.8% | 114.6% |
| 1985 | 143.6 | 14,566.9 | 84.5 | 8,568.7 | 1.7% | 4.9% | 10.1% | 119.4% |
| 1986 | 149.2 | 15,129.2 | 117.1 | 11,873.8 | 1.8% | 1.3% |  10.1% | 124.7% |
| 1987 | 156.4 | 15,851.6 | 145.4 | 14,740.5 | 2.3% | 1.6% | 9.8% | 129.2% |
| 1988 | 169.5 | 17,166.6 | 158.1 | 16,008.6 | 4.7% | 1.2% | 8.8% | 129.7% |
| 1989 | 182.3 | 18,362.2 | 159.8 | 16,098.2 | 3.5% | 3.1% | 7.4% | 126.4% |
| 1990 | 195.0 | 19,607.2 | 200.1 | 20,119.9 | 3.1% | 3.5% | 6.6% | 130.3% |
| 1991 | 205.3 | 20,560.9 | 205.4 | 20,563.7 | 1.8% | 3.2% | 6.5% | 131.8% |
| 1992 | 213.2 | 21,276.7 | 228.7 | 22,823.0 | 1.5% | 2.3% | 7.1% | 134.7% |
| 1993 | 216.2 | 21,472.2 | 218.7 | 21,723.6 | -1.0% | 2.5% | 8.6% | 138.9% |
| 1994 | 227.9 | 22,566.2 | 238.6 | 23,624.5 | 3.2% | 2.4% | 9.8% | 137.1% |
| 1995 | 238.3 | 23,519.1 | 288.3 | 28,458.5 | 2.4% | 1.3% | 9.7% | 131.3% |
| 1996 | 245.8 | 24,236.3 | 279.3 | 27,535.3 | 1.3% | 1.8% | 9.6% | 129.0% |
| 1997 | 259.6 | 25,521.1 | 253.0 | 24,878.7 | 3.8% | 1.5% | 9.2% | 124.3% |
| 1998 | 267.6 | 26,257.7 | 258.9 | 25,399.2 | 2.0% | 0.9% | 9.3% | 119.2% |
| 1999 | 281.0 | 27,513.1 | 258.5 | 25,309.1 | 3.5% | 1.1% | 8.4% | 115.4% |
| 2000 | 298.1 | 29,110.0 | 236.9 | 23,136.5 | 3.7% | 2.7% | 6.9% | 109.6% |
| 2001 | 308.1 | 30,021.8 | 236.7 | 23,067.2 | 1.1% | 2.4% | 6.6% | 108.2% |
| 2002 | 318.3 | 30,870.9 | 258.2 | 25,044.3 | 1.7% | 1.5% | 7.5% | 105.4% |
| 2003 | 327.9 | 31,665.3 | 318.0 | 30,707.7 | 1.0% | 1.5% | 8.2% | 101.7% |
| 2004 | 348.7 | 33,545.0 | 369.0 | 35,497.6 | 3.6% | 1.9% | 8.4% | 97.2% |
| 2005 | 368.0 | 35,232.8 | 385.9 | 36,945.5 | 2.3% | 2.5% | 8.5% | 95.1% |
| 2006 | 389.1 | 37,014.5 | 408.3 | 38,841.8 | 2.6% | 2.3% | 8.3% | 91.5% |
| 2007 | 414.3 | 39,140.3 | 471.0 | 44,496.8 | 3.7% | 1.8% | 7.5% | 87.3% |
| 2008 | 424.1 | 39,760.0 | 517.3 | 48,493.1 | 0.4% | 4.5% | 7.0% | 93.2% |
| 2009 | 418.2 | 38,891.8 | 482.7 | 44,892.2 | -2.0% | 0.0% | 8.0% | 100.2% |
| 2010 | 435.4 | 40,162.4 | 481.8 | 44,448.2 | 2.9% | 2.3% | 8.4% | 100.3% |
| 2011 | 451.9 | 41,082.4 | 523.2 | 47,564.4 | 1.7% | 3.4% | 7.2% | 103.5% |
| 2012 | 469.7 | 42,409.3 | 496.5 | 44,824.2 | 0.7% | 2.6% | 7.7% | 104.8% |
| 2013 | 487.3 | 43,755.2 | 521.8 | 46,848.6 | 0.5% | 1.2% | 8.6% | 105.5% |
| 2014 | 503.6 | 45,043.2 | 535.5 | 47,897.0 | 1.6% | 0.5% | 8.7% | 107.0% |
| 2015 | 521.0 | 46,365.2 | 462.4 | 41,147.3 | 2.0% | 0.6% | 8.7% | 105.2% |
| 2016 | 550.6 | 48,679.7 | 475.9 | 42,076.4 | 1.3% | 1.8% | 7.9% | 105.0% |
| 2017 | 575.8 | 50,726.6 | 502.6 | 44,274.1 | 1.6% | 2.2% | 7.2% | 102.0% |
| 2018 | 600.5 | 52,678.4 | 543.6 | 47,689.5 | 1.8% | 2.3% | 6.0% | 99.8% |
| 2019 | 624.1 | 54,481.0 | 535.4 | 46,740.5 | 2.1% | 1.2% | 5.5% | 97.7% |
| 2020 | 595.7 | 51,703.3 | 521.3 | 45,238.7 | -5.7% | 0.4% | 5.8% | 112.8% |
| 2021 | 659.3 | 57,054.5 | 599.1 | 51,849.3 | 6.2% | 3.2% | 6.3% | 108.4% |
| 2022 | 723.1 | 62,065.1 | 589.5 | 50,597.9 | 2.4% | 9.5% | 5.4% | 103.9% |
| 2023 | 751.7 | 64,125.3 | 596.7 | 50,906.1 | 0.4% | 4.9% | 5.6% | 105.1% |
| 2024 | 778.3 | 66,336.5 | 619.3 | 52,786.0 | 1.4% | 1.8% | 5.6% | 107.2% |
| 2025 | 802.1 | 68,219.2 | 642.3 | 54,627.8 | 1.2% | 1.7% | 5.6% | 109.7% |
| 2026 | 827.5 | 70,140.6 | 666.5 | 56,487.1 | 1.2% | 1.7% | 5.5% | 112.3% |
| 2027 | 853.6 | 72,111.5 | 690.7 | 58,351.9 | 1.2% | 1.7% | 5.5% | 115.1% |
Companies
In 2022, Belgium had many companies in the Services sector, with 433,375 registered. The next largest sector was Finance, Insurance, and Real Estate, with 169,544 companies.
Images
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