The Belgian economy continues to experience turbulence despite renewed optimism in 33% of sectors, according to an economic analysis published on Tuesday by the Federation of Belgian Enterprises (FEB).
Although US President Donald Trump's trade war has little or no impact on 53% of sectors, it is creating an atmosphere of uncertainty that is damaging profitability and investment.
According to the FEB report, economic activity remains well below normal. In 70% of sectors, it is below the long-term average, particularly in industry.
The textile, chemical, steel, automotive assembly and mechanical engineering sectors, in particular, are suffering from structural weaknesses. The rate of utilisation of production capacity in industry hovers around 76%, which is well below the historical average of 80%.
The FEB survey indicates some stabilisation in profitability and investment, but at a rather low level. The analysis shows that 80% of sectors have experienced stable profitability over the last six months, but below the long-term average.
Investments mainly target innovation, energy savings or automation to save on labour. Investment intentions for expansion are exceptionally low.
In terms of employment, 40% of the new jobs created are in the public and non-market sectors. In industry, the picture is bleaker, with 15,200 jobs lost since the beginning of 2023, including 1,700 in the last two quarters.
Despite these rather worrying signs, sectoral federations are showing greater optimism than in previous months. The good news includes a gradual slowdown in inflation, the easing of monetary policy and the imminent arrival of a number of public investments.
