PUBLISHED April 28, 2026
Belgium Remains One of Europe’s Key Economies
According to “Situation économique et financière de la Belgique” published by the French Treasury, Belgium remains the 7th largest economy in the European Union. With around 12 million inhabitants and a GDP of €642 billion in 2025, the country continues to play an important economic role in Western Europe thanks to its strategic location and dense transport infrastructure.
Growth Holds Up Despite Global Uncertainty
Belgium’s economy showed resilience in 2025 with growth of 1.0%. The Federal Planning Bureau expects growth to stabilize at 1.1% in both 2026 and 2027, although the report notes that this outlook remains dependent on the consequences of the Middle East crisis
Domestic Demand Is the Main Support
The report emphasizes that Belgian growth is driven primarily by domestic demand rather than exports. Household consumption and internal economic activity continue to provide the main support for GDP, helping offset a weaker external environment.
Belgium is a highly open economy, with exports of goods and services reaching €485.9 billion in 2025, equal to 75.7% of GDP. However, export volumes declined by 0.2%, while imports rose slightly by 0.1%, suggesting softer international demand and a less favorable trade environment.
Belgium is a highly open economy, with exports of goods and services reaching €485.9 billion in 2025, equal to 75.7% of GDP. However, export volumes declined by 0.2%, while imports rose slightly by 0.1%, suggesting softer international demand and a less favorable trade environment.
Belgium’s labor market remains relatively firm. Unemployment stood at 6.2% in 2025 and is forecast at 6.5% in 2026, close to eurozone levels. At the same time, the government continues efforts to expand labor supply in response to recruitment challenges.
One of the report’s main concerns is the continued rise in labor costs. Hourly wage costs in the private sector increased by 3.1% in 2025, adding pressure for companies already dealing with elevated operating expenses. This is particularly important for export-oriented businesses competing internationally.
While growth remains stable, Belgium still faces vulnerabilities in public finances. High debt levels, budget deficits, aging-related spending, and rising interest costs continue to weigh on the long-term outlook. This means Belgium enters 2026 with a resilient economy—but one that still needs structural reform to strengthen future competitiveness.
Belgium’s labor market remains relatively firm. Unemployment stood at 6.2% in 2025 and is forecast at 6.5% in 2026, close to eurozone levels. At the same time, the government continues efforts to expand labor supply in response to recruitment challenges.
One of the report’s main concerns is the continued rise in labor costs. Hourly wage costs in the private sector increased by 3.1% in 2025, adding pressure for companies already dealing with elevated operating expenses. This is particularly important for export-oriented businesses competing internationally.
While growth remains stable, Belgium still faces vulnerabilities in public finances. High debt levels, budget deficits, aging-related spending, and rising interest costs continue to weigh on the long-term outlook. This means Belgium enters 2026 with a resilient economy—but one that still needs structural reform to strengthen future competitiveness.
