Belgian employers warn economy is fragile 

Consumer confidence in Belgium rose to +2 in November, its highest level in four years, giving households a more positive view of the future. But business leaders warn this optimism hides growing problems in the wider economy.

A new survey by the Federation of Belgian Enterprises (VBO) shows that companies are under pressure. Profits are falling, investment is slowing and, for the first time, no sector expects to create extra jobs in the next six months.

Economic activity improved slightly in the second half of last year, helped by services such as hospitality and ICT. Industry, however, continues to struggle. Higher costs, a strong euro, US import tariffs and global overcapacity are squeezing company margins.

The VBO expects the Belgian economy to grow by just 1.1% in 2026, the same as in 2025. This growth relies mainly on household spending, while business investment and exports remain weak. Employers warn that an economy running on one “engine” is highly vulnerable to shocks such as energy prices, interest rates or geopolitical tensions.

The figures underline the concern. Almost 40% of sectors reported lower profitability, half are investing less, and more than 10,500 companies went bankrupt in the first 11 months of 2025. Construction was hit especially hard.

VBO chief Pieter Timmermans urged the government to act quickly on promised measures to improve competitiveness, including lower energy costs, more labour flexibility and fewer administrative burdens. “Without competitive companies, there are no jobs,” he warned.

^{Illustration photo © BELGA PHOTO TOM GOYVAERTS}