Belgium Overview

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Capital City: Brussels

 

The GDP growth was only 1.2% in 2005 whereas it was 2.9% in 2004. The IMF forecasts a 1.9% growth in 2006. This moderate growth is the consequence of a limited domestic demand as well as a weak external demand for Belgian products due to the French, German and Dutch economic slowdown. The Belgian economy strongly relies on its European trade partners' economical situation given that it realizes 75% of its exports inside the Euro zone. Furthermore, Belgian exports competitivity suffers from the strong Euro appreciation. The labour market has been deteriorating for two years and the unemployment rate has gone up from 8% of the active population in 2005.

The Belgian agricultural sector provides 1.32% of the country's GDP and plays a much lesser role in its economy as compared to other European countries. Animal breeding and dairy production are dominant activities. The agricultural policy comes under the domain of Regions. The industrial sector provides 26.48% of the GDP. Among the main industrial activities are the production of semi-processed and semi-finished goods (steel and non-ferrous material, chemical products) and textile. The biotechnology sector is fast developing. The rest of the economic activity is widely dominated by the service industry which represents 71.8% of the GDP and employs 72.19% of the active population.

Belgium has a very open economy, one of the world's first destinations for foreign investments. The three top investors are Luxemburg, the Nertherlands and France. Belgium's top three import partners are Germany, the Netherlands and France. The country mainly imports chemical and pharmaceutical products, machinery and mechanical appliances, and transport material. The top three export partners were Germany, France and Netherlands. The exportations mainly concern chemical products, transport material and machinery, and mechanical appliances.