With Belgium's economy now being among the fastest growing in the eurozone, young businesses appear to be flourishing. Belgium now has 15 businesses in the FT 1000 list, when added to the Netherlands' 29, is highlights the role of Benelux counties in such sectors as fintech, smart logistics, and advanced manufacturing. Economists at Belgian bank KBC emphasize the country's economic strength as its real GDP growth in the final quarter of 2023 was 0.4 percent, which was double their forecast. Economists say this positive surprise shows the continued resilience of the Belgian economy. Belgium is one of very few European countries that has not recorded a single negative quarterly growth rate since the beginning of 2022.
The main driver in growth seen has been in the Dutch-speaking region of Flanders. Unlike other regions, Flanders has little legacy of heavy industry, such as coal mining and steel making, and instead tends to host companies in high-margin industries. As Belgium is a federal state, Flanders has its own government which controls over half of state spending. Flander's economy is supported by a dedicated resilience plan, which aims to keep it competitive, and includes financial and administrative help for start-ups. The fastest-growing sectors include life science, automotive, media, and entertainment. Anthony de Bruyn, marketing director, says Belgium is a great place to start businesses, but adds that the biggest issues for start-up businesses are finding staff and investors to scale up.
6 comments:
It's impressive to see Belgium's economy thriving, especially with its real GDP growth exceeding expectations and consistently positive quarterly growth rates since 2022. This success not only highlights the resilience of the Belgian economy but also underscores the effectiveness of its policies in supporting business growth.
Flanders' emergence as a key driver of growth within Belgium is notable, particularly due to its focus on high-margin industries and supportive government initiatives. The region's dedication to fostering innovation and providing assistance to start-ups reflects a proactive approach to economic development.
What specific factors do you think have contributed to Belgium's economic strength, allowing it to consistently outperform expectations and maintain positive growth rates since 2022?
In what ways do you believe the supportive measures implemented by Flanders' government have facilitated the growth of start-ups and high-margin industries in the region?
I find this very interesting as Belgium is usually a country that will fly under our radars for economic activity. Obviously, that has proven to beneficial for the Belgians. I think this is a perfect example of when an area dedicates itself to developing a strong industry that will have long-run benefits. I will be interested to see if this area of Belgium begins to get even more activity and recognition in the future.
I was thinking the same as Rachel, also it is quite interesting seeing how some European countries have been going through some economic downturns while others have been able to sustain growth
Post a Comment