Belgium's budget deficit is expected to stabilise at 5.2% of GDP this year, but increase to 5.4% next year, according to the European Commission's forecasts, published on Thursday.
Belgium remains the worst performer in the eurozone. The country closed last year with a deficit of 5.2%.
This figure is expected to be confirmed this year based on "measures taken by the (various) governments to limit spending and increase revenue," according to calculations by the European Commission.
The increase in Belgian defence spending and interest payments is thus partially offset by restrictions on the payment of allowances, subsidies, and salaries in the civil service.
According to the Commission, the spending reduction stems in particular from a series of pension and re-employment reforms. Despite this stabilisation, the kingdom remains the worst performer in the rankings, followed by France with a projected deficit of 5.1%.
In 2027, Belgium's deficit is expected to increase further, reaching 5.4% of GDP due to rising spending. France's deficit, however, is expected to exceed Belgium's, reaching 5.7% next year.
Belgium's debt is therefore expected to rise from 107.9% of GDP last year to 110.5% this year, and even 112.8% in 2027.
According to the Commission's forecasts, Belgian GDP is expected to grow by only 0.7% this year and 0.9% next year. This is less than the eurozone average, with respective increases of 0.9% and 1.2%.
The European Commission revised its growth forecasts downwards due to rising fuel prices following the war in the Middle East. These prices will fuel inflation and undermine the confidence of economic actors.
