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Fitch confirms Belgium’s AA- credit rating

The credit rating agency Fitch confirmed Belgium’s AA- credit rating on Saturday. They also rated Belgium as having a stable outlook. The agency did highlight the risk of a surge in the Belgian property market.

Fitch predicts a 1.7% growth in Belgium’s GDP this year, stimulated by interior demand. The GDP growth in Belgium is expected to be 1.7% and 1.5% in 2018 and 2019 respectively. The credit rating agency says the Belgian debt should drop from 105.7% of the GDP to 104.6% of the GDP. They estimate it will fall to 101.1% in 2019.

However, Fitch also pointed out the increase in household debt, caused by the increase in property prices. The average debt for Belgian households is 104% of the average for European households. But Fitch added that Belgian households are the best savers in Europe (246% of the GDP).

The credit rating agency said the Organisation for economic cooperation and development (OCDE) supported measures aimed at limiting a surge in the Belgian property market. The Belgian National Bank asked the government to do something earlier this month.

(Source: Belga)