The National Bank of Belgium (Banque nationale de Belgique) has confirmed that Belgium’s economic growth remained sluggish in the second quarter of 2023, with a growth rate of 0.2%.
Economic Growth:
The Gross Domestic Product (GDP) in volume, adjusted for seasonal variations and calendar effects, increased by 0.2% in the second quarter of 2023 compared to the previous quarter. When compared to the same quarter of the previous year, the growth rate stands at 0.9%.
Sectoral Analysis:
- Industry: The value added in the industry sector declined by 1.3% compared to the previous quarter.
- Services: The services sector continued to show positive growth, with a 0.5% increase in value added.
- Construction: The construction sector’s value added maintained positive growth at 0.3%.
Domestic Demand:
In the first quarter, households increased their consumption expenditure by 0.5% compared to the previous quarter. This increase was mainly supported by purchases of non-durable goods. Investments in housing, however, decreased by 1.2%. Public consumption expenditure decreased by 0.6%, while public investments grew by 0.5%. Business investments continued to grow at a robust pace, with a positive growth rate of 2.1%.
Trade Balance:
Belgium’s trade balance showed a negative impact on GDP growth in the second quarter. Exports of goods and services contracted more significantly (-1.0%) than imports (-0.8%), resulting in a negative contribution of -0.2 percentage points to GDP growth.
Employment:
During the second quarter of 2023, domestic employment on a quarterly basis continued to grow by 0.4%, with an increase of 18,600 employed individuals. Compared to the same period in 2022, the number of employed people increased by 1.0%, totaling 51,400 new jobs.
Data Accuracy:
Compared to the flash estimate of July 28, 2023, the published growth figures are much more precise. The main administrative data (such as VAT data and industrial production data) were available to a similar extent, as is customary with the 60-day estimate of a quarter’s GDP. However, these growth estimates continue to be characterized by high uncertainty, as has been the case since the beginning of the Covid-19 crisis and its disruptive effects on estimation models.