In a positive development for the Belgian economy, the first quarter of 2023 witnessed a growth rate of 0.5% in real gross domestic product (GDP), adjusted for seasonal and calendar effects. Compared to the same period last year, the growth rate stood at 1.4%, signaling a gradual recovery.
The manufacturing industry experienced a slight decline in value added by 0.6% compared to the previous quarter. However, the services sector continued its positive trajectory with a growth of 0.8%. The building industry saw a slowdown in growth, reaching 0.3%.
Domestic demand played a significant role in driving economic expansion. Household consumption expenditure increased by 0.6% in the first quarter, primarily driven by purchases of non-durable goods. In contrast, purchases of durable goods declined. Residential investment showed marginal growth of 0.1%, while public investment exhibited higher volatility, surging by 6.4%. On the other hand, government consumption expenditure decreased by 0.7%. Business investment continued to progress, expanding by 1.9%.
However, foreign trade posed a challenge as both imports and exports of goods and services contracted by 1.0% in the first quarter. This aspect warrants attention and further analysis.
The employment sector continued its positive trend, with domestic employment increasing by 0.3% compared to the previous quarter, representing a rise of 17,800 employed persons. In comparison to the corresponding period in 2022, the number of employed persons grew by 1.3%, equivalent to 67,700 persons.
These figures reflect a resilient Belgian economy that is gradually recovering from the impact of the global pandemic. The growth in domestic demand and employment offers hope for sustained economic progress. However, the contraction in foreign trade emphasizes the need for strategies to boost international competitiveness and trade performance.
Policymakers and economists are closely monitoring these developments, aiming to strike a balance between supporting domestic demand and revitalizing the export sector. Continued efforts in investment promotion, innovation, and market diversification will play a crucial role in sustaining and strengthening Belgium’s economic growth.