Flemish economy expected to grow by 2.8 percent this year

The Flemish economy is expected to grow by 2.8 percent this year, according to a report by Statistics Flanders. For next year, a slowdown to 1.3 percent growth is expected, as a result of the war in Ukraine and inflation, which have a negative impact on private consumption and exports.

At 2.8 percent, the economy in Flanders is expected to grow more strongly than those in Brussels (+2.1 percent) and Wallonia (+2.5 percent), according to Statistics Flanders' forecast. The Flemish figure is on a par with the European average (+2.7 percent).

Economic growth is strongest in the transport and communication sectors, health care and social services, business services and the production of equipment, according to Statistics Flanders on its website. Private consumption is still benefiting from the upturn that started in 2021. But a further recovery is hampered by the war in Ukraine and inflation.

In 2021, the Flemish economy still grew by 7 percent, after the sharp downturn the year before with the COVID-19 pandemic (-5.5 percent). In the years 2014-2019, growth hovered around 2 percent or just above. In recent years, growth has been influenced mainly by the real increase in labour productivity; until 2019, the development of employment played a bigger role.

(TOM)

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De Grote Markt in Antwerpen, Belgium. - © BELGA PHOTO DIRK WAEM