According to the National Bank of Belgium, the country’s economy gained momentum in Q1 2023. Preliminary estimates show that the gross domestic product increased by 0.4% from January to March, compared to a 0.1% expansion in the previous quarter. This growth exceeded economists’ expectations, with a consensus forecast predicting a 0.2% increase on a quarterly basis.
The services sector was the primary contributor to the economic growth, expanding by 0.7% on a quarterly basis. Similarly, the construction output rose by 0.4%, while the industrial sector contracted by 0.6%. Despite rapidly increasing interest rates, the strength in services and construction sectors was enough to support the country’s economic growth.
The National Bank of Belgium expects the economy to expand by 0.6% in 2023 as a whole. Growth is expected to pick up further as inflation moderates. The outlook is positive for the country, with the services and construction sectors likely to remain strong. However, the industrial sector’s performance may remain a concern.
Belgium’s economy is closely tied to the broader European economy. While the country’s economic growth is likely to be supported by its domestic industries, global economic trends will also play a crucial role. Nevertheless, the recent growth in the services and construction sectors bodes well for Belgium’s economic future.
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