The competitiveness of Walloon companies is a central concern in a sluggish economic context, according to the AKT for Wallonia’s autumn economic report released on Thursda.
a collaboration between the Walloon Union of Enterprises and the southern Chambers of Commerce and Industry.
The election of Donald Trump in the United States and his announced protectionist measures worry Walloon entrepreneurs.
A survey conducted by AKT for Wallonia shows that six-month export prospects remain negative. The unfavourable business climate in France and Germany, Wallonia’s major trading partners, hinders growth, as does the slow growth of the eurozone and the industrial sector’s loss of momentum. Announced US protectionist measures further dampen prospects.
Activity in Wallonia has remained stable over the past two years, with expectations being moderately positive but limited. Hiring prospects are also positive but low, primarily due to Belgium’s ongoing wage handicap.
Investments are expected to continue growing thanks to falling interest rates, which make financing conditions more favourable for companies.
These factors suggest a very limited Walloon growth forecast of 0.8% for 2024, with a 1% GDP increase predicted for the following year. The political situation in the US and the challenging budgetary context will be significant obstacles.
"Concerns related to Donald Trump’s election are based on three measures proposed by the future president," analysed economist Olivier Pauwels.
"A reduction of the corporate tax rate to 15% (from the current 21%), a boost in energy independence leading to increased oil and gas extraction, and measures on trade and exports, particularly higher customs duties."
In this climate, it is essential to act at all levels of power, according to AKT for Wallonia. The European Union needs to advance its roadmaps to revive the economy and find ways to negotiate with Donald Trump to mitigate the impact of his future measures in Europe.
In Belgium, the organisation stresses the importance of swift negotiations to form a federal government to focus on improving business competitiveness.
At the Walloon level, AKT for Wallonia believes the government’s roadmap is heading in the right direction and now needs implementation.
"It’s not a storm yet, but grey clouds are gathering," commented Frédéric Panier, CEO of AKT for Wallonia. "Donald’s Trump return to the US presidency calls for increased efforts to create a favourable environment for entrepreneurship and economic activity in Europe, Belgium, and Wallonia."
The ecological issue was not addressed during the press briefing. However, regarding decarbonisation, Axel Boitel, president of the Walloon Brabant Chamber of Commerce and Industry, affirmed,
"It’s 100% within companies’ minds today. Many see decarbonisation as a way to create added value, which is positive since competitiveness should not be based on prices but on product value. I am convinced we must move towards this, but the administrative burden is a significant obstacle."
