The National Bank of Belgium raises status questions about the economic situation of the country

KORTRIJK – In Kortrijk Xpo, the National Bank of Belgium (NBB) has taken stock of the economy. A select group of West Flemish entrepreneurs (including Charles Beauduin and Christian Dumolin) came to follow the exposé, which was quite critical of the government. The NBB’s 2023 annual report contains no fewer than 339 pages. Made in West Flanders distills the highs and lows, the questions and the exclamation points.

Director Tim Hermans made an in-depth analysis on behalf of the NBB about the state of the country. He performed his task with gusto. All aspects were discussed.

In 2023, business investment increased, but real estate investment and net exports decreased. 2023 was also a significantly less good year for job creation. But unemployment, especially in West Flanders, remained at the lowest possible level of 3.5 percent. Our country also experienced a rapid decline in inflation in 2023, a result of the downward trend in energy prices. Finally, the industry slowed down compared to previous years. The increase in the service sector partly compensated for this shortcoming.

A country full of challenges

For Tim Hermans, our country’s competitive handicap continues to weigh heavily, especially if you compare the parameters with our most important trading partners such as France, the Netherlands and Germany. The heavy wage costs, partly caused by the index system, hang like a millstone around the Belgian neck. In the long term and for the next generations, many questions have to be asked about this, Hermans said clearly.

The NBB spokesperson was also particularly critical of government finances, which were labeled as a ‘worry child’. Even after corona, government expenditure has continued to rise and this almost creates a snowball effect on interest repayments. For Tim Hermans it is abundantly clear that our country faces major challenges in the coming years. He mentioned by name: the much-needed restructuring of the government budget, the need for more productivity, bringing employment up to standard (too few people are currently working) and accelerating the energy transition (as things are evolving now, we will achieve zero emissions by 2050).

(Karel Cambien)

photo: Mediahuis/De Standaard (archive)