Belgian exports decline more sharply than global trade
Belgian exports declined more sharply than global trade in 2024, while the country’s reliance on imports from outside the European Union continued to grow. At the same time, Belgium stands out for its relatively strong investment in research and development. These findings come from the first edition of the Belgian Competitiveness Overview, a new annual report by the Federal Public Service of the Ministry of Economy (FPS), presented on Monday in the presence of minister of economy David Clarinval (MR).
Global trade contracted by 3 per cent in export value in 2024, whereas Belgian exports declined by 4 per cent compared with 2023. "A sharper decline that confirms the difficulties a very open economy faces in an already deteriorating international context," states the FPS.
Rising dependence on non-EU imports
Alongside this export downturn, Belgian industry has become increasingly dependent on imports from countries outside the European Union (EU). This trend is evident across most industrial sectors and is driven primarily by trade with China, the rest of Asia and the United States.
Strong performance in research and development
Despite these pressures, Belgium continues to outperform its neighbours in research and development (R&D). R&D intensity in the Belgian economy rose from 3.1 per cent of GDP in 2015 to 3.4 per cent in 2024. In neighbouring countries, by contrast, the average fell to 2.2 per cent of GDP. This relative strength is largely attributed to technology-intensive sectors, particularly the pharmaceutical industry, as well as sustained investment in intangible assets.
The report also highlights several persistent challenges for the Belgian economy. Industrial energy costs remain significantly higher than in neighbouring countries, while productivity gains are insufficient to offset comparatively high labour costs. In addition, too few students graduate in STEM fields, and the national employment rate remains below the 80 per cent target.
© PHOTO UNIVERSAL IMAGES GROUP
Related news
