Belgian economy and purchasing power are growing, budget deficit
The National Bank of Belgium predicts that the Belgian economy will grow by an average of 1.2% over the next three years. Consumption will grow more strongly than in recent years thanks to improved purchasing power. However, the budget deficit is set to worsen.
The National Bank of Belgium presented its growth predictions for the coming three years on Friday. It also provide a summary of the economic situation in Belgium during 2018. Given the backdrop of poor demand in foreign markets and continued uncertainty, the Belgian economy held its own relatively well last year when compare with the economy of other Eurozone countries.
The economy grew by 1.4% last year with growth of 1.2% expected this year. The bank predicts that the economy will grow by 1.1% next year and by 1.2% in 2021.
The National Bank of Belgium expects consumption to increase by 3.5% over the next three years. People will be buying more, due to an increase in purchasing power that will come about due to increases in (take home) pay. Although the growth in the number of jobs will remain strong it will slow down.
Inflation will be around 2% which is in line with the projected rise in labour costs.