GDP growth in Belgium will be subdued in the years ahead. This will mainly be driven by higher eurozone demand and increasing house- hold spending, while government reforms of the tax system will posi- tively impact employment in the coming years. ...GDP growth in Belgium will be subdued in the years ahead. This will mainly be driven by higher eurozone demand and increasing house- hold spending, while government reforms of the tax system will posi- tively impact employment in the coming years. Quarterly Update: We have left our forecasts for real GDP growth in Belgium for ---- and ---- unchanged at -.- for both years. ...As threats of terrorist attacks are also prominent within Belgium itself, Prime Minister Charles Michel has already increased the security budget, with an extra EUR---mn allocated for ----.
...Private Consumption: We maintain our view that private consumption will be an important driver of economic growth in the coming years, contributing on average --.- to GDP between ---- and ----. Private consumption held up relatively well during the economic crisis years in Belgium, mainly due to stable levels of unemployment. ...Private consumption held up relatively well during the economic crisis years in Belgium, mainly due to stable levels of unemployment. Amid rising domestic and external demand, government attempts to stimulate job crea- tion by implementing new legislation to reduce employers tax burden should allow unemployment to fall further, from -.- in ---- to -.- in ----, according to our forecasts. Furthermore, our Oil & Gas team forecasts below consensus oil prices for the upcoming years (USD-- a barrel bbl in ---- and USD--/ bbl in ----). ...Gross Fixed Capital Formation (GFCF): On the back of eu- rozone recovery and stronger levels of private consumption, we expect fixed investment in Belgium to grow moderately in the years ahead. We see fixed investment growing from EUR--.-bn - Business Monitor International Ltd www.bmiresearch.com
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