Following the year 2009, most chaotic regarding the economy and marked by the global recession, the GDP growth has again become positive in 2010. It is estimated at 1.6% and is lead by strong public spending and the newly-found dynamism of international trade. Prospects for 2011 are hardly more optimistic.

 

The crisis has left Belgium in a difficult financial situation: the country faces a large public debt, the budget deficit has deepened, which has prompted the European Council to open an excessive deficit procedure. The government however refuses to adopt austerity measures and instead has decided to set up an economic stimulus plan.

Belgium is a prosperous country and its GDP is among the highest in the world. Nevertheless, regional disparities remain strong; Wallonia faces a worrying problem of structural unemployment.

The Belgian economy is largely orientated towards services. In fact, the tertiary sector accounts for almost three fourths of the national wealth. Brussels, which is home to several European institutions, numerous diplomatic missions and different interest groups, has created an economy which is based essentially on services.

 

The industrial sector accounts for practically a fourth of the GDP. There are significant discrepancies between the three Belgian regions. While Flanders has succeeded in developing the second largest petro-chemical sector in the world, Wallonia is in the middle of restructuring, following the closure of several collieries and a large number of steel industries. Brussels distinguishes itself in the areas of telecommunication, software development and in pharmaceutical and automobile industry.

Agriculture contributes a small amount to the Belgian economy.

The Belgian economy is particularly open, foreign trade representing more than 180% of GDP. In addition to being an export champion, Belgium also plays an important role as a transit and distribution center for the other countries of the European Union.

Belgium's trade deficit, which was structurally in surplus but had been gradually worsening since 2002, reached a colossal deficit under the effects of the global recession. It has somewhat recovered with the resumption of exports.

Belgian international trade is primarily done within the European Union (nearly 80% of exports and imports). Its main trading partners are the Netherlands, Germany, France, Great Britain and the United States.

Belgium figures among the countries most attractive to foreign direct investment (FDI). In its annual World Investment Report, the UNCTAD (United Nations Conference on Trade and Development) puts Belgium ahead of emerging economies such China, India and Russia, as well as established powers such as Canada and Hong Kong. Nevertheless, the recession has had a strong impact on the Belgian economy, which depends heavily on the countries of the European Union. FDI flows have dried up in 2009-2010 and are unlikely to recover their pre-crisis level soon.

Among the attractions of Belgian economy are: its strategic geographical position, at the crossroads of the main European markets; its high-quality transport, logistics and telecommunications infrastructure; its businesses specialized in the supply of intermediate and semi-finished goods; its multilingual and qualified workforce and a strong purchasing power.