Belgium

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

According to the Organization for Economic Cooperation and Development (OECD), Belgium’s GDP in 2006 grew by 2.9% over the previous year, whereas the Euro area grew by 2.6%. The economy has benefited from the EU–wide pick-up in activity, supportive monetary conditions and the beneficial effects of the multi-annual tax and labour market reforms that the government has implemented.
The Belgian economy is going through a strong recovery phase, partially as the result of the international upswing. However, unemployment remains high and labor utilization is relatively low.

The economy is projected to remain sluggish through most of 2008, before regaining some speed next year.

Economic growth and foreign direct investment are expected to slow down in 2008, due to credit tightening, falling consumer and business confidence, and above average inflation. However, with the successful negotiation of the 2008 budget and devolution of power within the government, political tensions seem to be easing and could lead to an improvement in the economic outlook for 2008.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	359.25	372.62	394.51	442.77e	467.72e
GDP (constant prices, annual % change)	2.8	1.4	3.0	2.6e	1.9e
GDP per capita (USD)	34,391.42	35,450.74	37,300.69	41,605.47e	43,677.84e
General government balance (in % of GDP)	-0.1	-2.4	0.1	-0.2e	-0.2e
Inflation rate (%)	1.9	2.5	2.3	1.8e	1.8e
Unemployment rate (% of the labor force)	8.4	8.4	8.2	7.6	7.6
Current Account (billions USD)	12.63	9.55	7.78	10.98e	11.92e
Current Account (in % of GDP)	3.5	2.6	2.0	2.5e	2.5e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	8.2	7.6	7.6

Source:

Main sectors of industry

Presently the Economy of Belgium is more service oriented. GDP composition by sector: agriculture: 1.1%, industry: 24.5%, services: 74.4% (2007 est.).

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	7.8	-0.1	1.8
Value added (in % of GDP)	1.0	24.0	74.9
Employment by sector (in % of total employment)	2.0	24.9	72.8

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.06	0.89	0.81	0.80	0.80

Source: World Bank - World Development Indicators

Foreign trade in figures

In 2007 Belgium's foreign trade remained very dynamic all in all. Exports of goods went up by 7.6%, imports of goods raised at almost as fast a pace. At the end of 2007, Belgium's purchases from abroad totaled EUR 301.5 billion, as compared with EUR 280.3 billion in 2006, a 7.5% growth.
Foreign Trade in Belgium is regional: The European Union accounted for 76.8% of Belgian exports, 63.3% of which went to the Euro zone. Deliveries to the EU member countries went up by 7.5%.

However, sales to the countries not belonging to the euro zone rose at a faster pace (+10.0%) than exports to the euro zone (+7.0%). At the end of 2007 and in relation to 2006, overseas exporting was characterized by both an increase in exports to Asia and Oceania and a relative decrease in exports to Africa and to America.

More than 80 % of Belgium’s GDP is derived from foreign sales, which is one of the highest percentages among industrialized nations. In addition to being an export champion, Belgium also fulfils an important role as a transit and distribution center for other European Union member countries.

Foreign trade indicators	2002	2003	2004	2005
Imports of goods (millions USD)	159,648	194,003	235,718	257,136
Exports of goods (millions USD)	169,166	204,962	245,426	263,021
Imports of services (millions USD)	35,863	42,862	49,023	51,294
Exports of services (millions USD)	37,822	44,708	52,708	55,754
Imports of goods and services (annual % change)	0.1	3.1	6.4	3.4
Exports of goods and services (annual % change)	1.2	2.9	6.2	1.8
Imports of goods and services (in % of GDP)	77.8	76.6	79.8	84.8
Exports of goods and services (in % of GDP)	82.6	81.0	83.8	87.1
Trade Balance (millions USD)	9,518	10,959	9,708	5,885
Trade Balance (including service) (millions USD)	11,477	12,804	13,392	10,345
Current Account (millions USD)	11,611	12,906	12,537	9,328
Current Account (in % of GDP)	4.6	4.2	3.5	2.5
Foreign trade (in % of GDP)	160.4	157.6	163.6	171.9

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Germany	19.9%
France	17.0%
Netherlands	12.0%
United Kingdom	8.0%
United States	6.1%

Main suppliers (% of imports)	2006
Netherlands	18.4%
Germany	17.5%
France	11.3%
United Kingdom	6.6%
Ireland	5.8%

Source: 2006

Main products

Main exports (% of exports)	2006
Vehicles other than railway or tramway	11.9%
Pharmaceutical products	10.2%
Mineral fuels, mineral oils	7.7%
Machinery and mechanical appliances	7.6%
Plastics	7.5%

Main imports (% of imports)	2006
Mineral fuels, mineral oils	13.5%
Vehicles other than railway or tramway	10.7%
Pharmaceutical products	9.6%
Machinery and mechanical appliances	8.4%
Organic chemicals	8.0%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: Ministry of Foreign Affairs, of the Foreign trade and Collaboration in Development Belgian Chamber of Commerce Exportservices
Statistical Office: National Institute of Statistics
Central Bank: National Bank of Belgium
Stock Exchange: Brussels, Paris and Amsterdam stock exchange
Online newspapers: Le Soir newspaper
Of Tijd
http://www.lalibre.be/ ">La Libre Belgique Newspaper
Echo newspaper
Search Engines: Advalvas
Altavista
Belgique Moteur
Ilse
Lycos Belgium
Netbel
Sharelook
Economic portals: Belgium Portal

Political outline

Executive Power: Chief of the state is the King, who plays a largely ceremonial and symbolic role. King's primary political function is to designate a political leader (Prime Minister) to form a new government. Following legislative elections, the leader of the majority party (or the leader of the majority coalition) is usually appointed Prime Minister by the King and then approved by the parliament for a four-year term.
The King, on recommendation of the Prime Minister formally appoint Council of Ministers. At the federal level, executive power is wielded by the Council of Ministers. The Prime Minister chairs the Council. Each minister heads a governmental department.
Legislative Power: The Belgian Parliament consists of the Senate and the Chamber of Representatives. The Chamber has 150 directly elected members. The Senate has 71 members.
Main political parties: Political parties in Belgium are divided on the basis of community and linguistic lines into two groups:
- Flemish parties: VLD (Flemish Liberal Democrats), CD&V (Flemish Christian Democrats Party), SP.A/Spirit (the Flemish Socialists and Spirit alliance), GROEN! (formerly AGALEV, Flemish Greens); NVA (New Flemish Alliance) and the right-wing VB (Flemish Interest);
- Francophone parties: PS (Socialist Party), MR (Reformist Movement), ECOLO (Francophone Greens); CDH (Humanist and Democratic Center) and FN (National Front).
Current political leaders: King: ALBERT II (since August 1993); Heir Apparent: Prince PHILIPPE, son of the present King.

Prime Minister: Mr Yves Leterme.
Minister-President of Flemish Government (Region and Community): Kris Peeters (CD&V)
Minister-President of French Community Government: Rudy Demotte (PS)
Minister-President of Walloon Regional Government: Rudy Demotte (PS)
Minister-President of Brussels-Capital Regional Government: Charles Picqué (PS)
Minister-President of German Community Government: Karl-Heinz Lambertz (SP)
Next election dates: European Parlement and regional Parlement on June 2009.