Crédito y Caución forecasts that Belgium's growth, which slowed in 2018, will remain below 1,5% in 2019 and 2020. Domestic demand and public investment will contribute to boosting economic activity.
The United Kingdom is an important export market for Belgium, especially for the transport equipment, textile and chemical industries, which could be negatively affected by the UK's exit from the European Union.
The fiscal deficit will increase again in 2019 and 2020, despite the fact that central government debt, at around 100% of GDP, remains one of the highest in the European Union, in relative terms. In the medium term, Belgium will have to address fiscal consolidation.
Belgium maintains a high level of corporate insolvencies. Bankruptcies are expected to increase slightly in 2019, following a modest 1% decrease in 2018. With approximately 10.075 cases expected this year, the number of insolvencies will remain above the levels recorded before the start of the international financial crisis in 2008.
