Flanders hit hardest as Belgian economy slows in 2024

Belgium’s economy grew more slowly in 2024. Flanders suffered the biggest setback compared with Brussels and Wallonia, according to new figures from the National Bank.

Economic growth fell to 1.4 per cent in Brussels and 1.2 per cent in Wallonia. In Flanders, it was much weaker at just 0.7 per cent.

All industrial sectors in Flanders dragged growth down. In Wallonia, the pharmaceutical industry was the main weak point, while in Brussels the IT sector struggled. Brussels did see some support from financial services.

For the first time since the Covid pandemic, the total amount of work done across Belgium also fell. The drop was largest in Flanders, at 0.4 per cent, mainly in industry and construction. Brussels and Wallonia recorded smaller falls of 0.1 per cent, helped by public services.

When it came to income and spending power, Brussels performed worst in 2024. Household income rose by just 1.5 per cent there, compared with 2.6 per cent in Wallonia and 2.3 per cent in Flanders. After adjusting for inflation, income increased in Wallonia and Flanders but slipped slightly in Brussels. The end of some government support measures, such as energy vouchers, hit Brussels families harder. Since inflation began rising in 2021, purchasing power has recovered in Flanders but not yet in Wallonia or Brussels.

Consumer spending continued to rise in 2024, though more slowly than in recent years. Wallonia saw the strongest growth per person at 3.4 per cent, followed by Flanders at 3.2 per cent and Brussels at 2 per cent. Travel, culture and eating out were again the main drivers.

Savings levels were stable. In Flanders, households saved about 15.9 per cent of their income, close to the long-term average. Wallonia’s saving rate stood at 10.1 per cent, while Brussels remained much lower at around 4.7 per cent.

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