Flanders is expected to maintain stronger economic growth than Wallonia and Brussels through 2031, according to regional forecasts published on Thursday by Belgium’s Federal Planning Bureau, IBSA, Statistiek Vlaanderen and IWEPS.
In 2025, GDP is projected to grow by 1.1% in both Wallonia and Flanders, compared with 0.5% in Brussels.
Growth is then expected to slow in 2026 to 0.8% in Wallonia and 0.7% in Flanders, while remaining at 0.5% in the capital.
The Federal Planning Bureau said this slowdown would be driven in part by weaker purchasing power, as inflation and reforms to unemployment benefits weigh on household incomes. The effect is expected to be more pronounced in Brussels and Wallonia.
From 2027, economic activity is forecast to pick up again across all three regions.
Flanders is nevertheless expected to keep its lead, with average annual growth of 1.4% between 2027 and 2031, compared with 1.1% in Wallonia and 0.8% in Brussels.
That stronger performance would be supported by more dynamic private consumption and higher household savings.
After several years of weak job creation, the labour market is also expected to improve gradually.
Employment growth is forecast to accelerate from 2027, helped by the economic recovery and measures aimed at increasing labour supply.
While job growth would be faster in Flanders and Wallonia than in Brussels, the employment rate is expected to rise more sharply in Wallonia because of a decline in its working-age population.
Regional public finances are also projected to improve under unchanged policies, although none is expected to return to balance.
Flanders will come close to balancing its budget temporarily in 2027, while the deficits in Wallonia, Brussels and the French Community are projected to narrow gradually but remain high by the end of the legislative term.
