Country Report Belgium 2016

Country report

  • Belgium
  • Agriculture,
  • Automotive/Transport,

28th April 2016

In Belgium, business failures are expected to decline by 7% in 2016. The level of corporate insolvencies will still be higher compared to 2008 levels.

2016_CR_WE_Belgium_key_indicators
2016_CR_WE_Belgium_industries_performance_forecast

The insolvency environment

The level of corporate insolvencies remains high

2016_CR_WE_Belgium_business_insolvencies

Belgian corporate insolvencies recorded yearly increases in the years 2007-2013. In 2014 business failures started to decrease again, and these are expected to decline by 7% in 2016. With about 9,000 cases forecast, the number of insolvencies will still be higher than the levels seen before the start of the global credit crisis in 2008 (see chart below).

Economic situation

The slow rebound is set to continue in 2016

2016_CR_WE_Belgium_Real_GDP

Belgian economic growth accelerated to 1.3% in 2014 after two years of weak performance, and this improvement continued in 2015, with 1.4% growth. In 2016 the economy is expected to increase 1.7%, with net exports contributing positively to Belgium’s economic performance and industrial production increasing. As Belgium is an export-driven economy, its balance of trade should be structurally positive.

Private consumption growth is expected to remain subdued in 2015. While unemployment is forecast to decrease, household spending is expected to be restrained by the on-going fiscal consolidation and wage restraining measures.

2016_CR_WE_Belgium_government_debt

It is anticipated that consumer price inflation will accelerate slightly in 2016, and reach 1.3%.

The yearly fiscal deficit is expected to decrease further in 2016, supported by on-going austerity measures. However, public debt will remain one of the highest in the European Union in terms of government debt-to-GDP ratio.

 

Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.