Belgium’s international trade has encountered a significant decline in the value of both imports and exports during the three-month period from March to May 2023. The decrease amounted to -12.3% for imports and -10.9% for exports.
This negative growth trend is an extension of the trend observed at the beginning of 2023, and it has persisted and worsened during the mentioned period. The monthly data clearly indicates a downward trajectory for both imports and exports during this time.
The decline in value mainly affected the trade of chemical and mineral products, diamonds, plastic materials, and common metals. The chemical and mineral sectors played a major role in weakening overall commercial exchanges. The contraction in the chemical sector can be partly attributed to the decline in COVID-19 vaccine trade, while the decrease in traded mineral products is due to the normalization of energy prices.
On the other hand, trade in transport equipment, machinery, and food products showed significant growth. Imports of transport equipment and machinery from China remained vigorous, contributing to the overall increase in imports. Notably, imports from China have been surging over the past few years, surpassing the growth rate of total imports. The trade deficit with China amounted to €28 billion in 2022.
Belgium’s export to China has recently outperformed the average growth rate. This surge in exports to China is driven by high food prices and substantial growth in the export of chemicals, transport equipment, and machinery. However, the value of exports to China remains limited compared to imports.
It is important for policymakers and businesses to closely follow these developments to understand the underlying trends and devise appropriate strategies to support and stabilize trade flows in the country. The normalization of energy prices may provide some relief, but uncertainties in international trade continue to warrant close monitoring.