Belgium Economy Profile 2008

Economy - overview

This modern, private-enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the populous Flemish area in the north. With few natural resources, Belgium must import substantial quantities of raw materials and export a large volume of manufactures, making its economy unusually dependent on the state of world markets. Roughly three-quarters of its trade is with other EU countries. Public debt is more than 85% of GDP. On the positive side, the government has succeeded in balancing its budget, and income distribution is relatively equal. Belgium began circulating the euro currency in January 2002. Economic growth in 2001-03 dropped sharply because of the global economic slowdown, with moderate recovery in 2004-07. 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 (purchasing power parity)

$378.9 billion (2007 est.)

GDP (official exchange rate)

$442.8 billion (2007 est.)

GDP - real growth rate

2.7% (2007 est.)

GDP - per capita (PPP)

$36,500 (2007 est.)

GDP - composition by sector

agriculture: 1.1%
industry: 24.5%
services: 74.4% (2007 est.)

Population below poverty line

15.2% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.4%
highest 10%: 28.4% (2006)

Inflation rate (consumer prices)

3.5% (2007 est.)

Investment (gross fixed)

21.4% of GDP (2007 est.)

Labor force

5.03 million (2007 est.)

Labor force - by occupation

agriculture: 2%
industry: 25%
services: 73% (2007 est.)

Unemployment rate

7.6% (2007 est.)

Distribution of family income - Gini index

28 (2005)

Budget

revenues: $217 billion
expenditures: $217.4 billion (2007 est.)

Public debt

86.1% of GDP (2007 est.)

Industries

engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, basic metals, textiles, glass, petroleum

Industrial production growth rate

3% (2007 est.)

Electricity - production

80.84 billion kWh (2005)

Electricity - consumption

82.99 billion kWh (2005)

Electricity - exports

8.024 billion kWh (2005)

Electricity - imports

14.33 billion kWh (2005)

Oil - production

9,000 bbl/day (2006)

Oil - consumption

591,000 bbl/day (2006 est.)

Oil - imports

1.109 million bbl/day (2004)

Oil - exports

523,400 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

16.61 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

17.27 billion cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006)

Current Account Balance

$11.04 billion (2007 est.)

Agriculture - products

sugar beets, fresh vegetables, fruits, grain, tobacco; beef, veal, pork, milk

Exports

$328.1 billion f.o.b. (2007 est.)

Exports - commodities

machinery and equipment, chemicals, diamonds, metals and metal products, foodstuffs

Exports - partners

Germany 19.7%, France 16.9%, Netherlands 12%, UK 7.9%, US 6.2%, Italy 5.2% (2006)

Imports

$320.9 billion f.o.b. (2007 est.)

Imports - commodities

machinery and equipment, chemicals, diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products

Imports - partners

Netherlands 18.3%, Germany 17.3%, France 11.2%, UK 6.6%, Ireland 5.7%, US 5.4% (2006)

Reserves of foreign exchange and gold

$16.5 billion (2007 est.)

Debt - external

$1.313 trillion (30 June 2007)

Stock of direct foreign investment - at home

$633.5 billion (2006 est.)

Stock of direct foreign investment - abroad

$485.1 billion (2006 est.)

Market value of publicly traded shares

$422.7 billion (2006)

Economic aid - donor

ODA, $1.978 billion (2006)

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)

Fiscal year

calendar year