Flemish economy set to outpace other Belgian regions in coming years

17 July 2025

According to new projections from Belgium’s Federal Planning Bureau and regional statistical agencies, Flanders is expected to experience stronger economic growth than Wallonia and the Brussels Capital Region between 2025 and 2030.

The Flemish economy is forecast to grow by 1.5% in 2025. This will then slow to an average of 1.2% in 2026 and 2027, primarily due to a decline in domestic demand. From 2028 to 2030, annual growth is expected to stabilise at an average of 1.4%.

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Wallonia and Brussels follow a similar pattern, albeit with lower figures. Growth in 2025 is forecast at 1.2% and 0.7%, respectively, before easing slightly to average 1.2% and 0.9% in Wallonia and Brussels, respectively, between 2028 and 2030.

Household purchasing power

Household purchasing power (real disposable income) is expected to remain almost unchanged in 2026 and 2027. This is partly due to reforms limiting the duration of unemployment benefits, which will reduce payments, a decline that will only be partially offset by an increase in social assistance recipients.

However, from 2028 onwards, purchasing power is projected to rise more significantly, especially in Flanders, thanks to planned income tax reductions and growing employment, particularly in Brussels. Flemish households are expected to experience an average annual increase in purchasing power of 1.2% from 2028 to 2030.

Unemployment rate

The unemployment rate in Flanders is forecast to fall from 6% this year to 4.7% by 2030. By contrast, high unemployment is expected to persist in Wallonia (12.4%) and Brussels (11.5%) until the end of the decade. The employment rate among 20- to 64-year-olds in Flanders is expected to reach 78.7% by 2030, falling just short of the 80% target. Wallonia and Brussels, however, are projected to remain below 70%.

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Public finances present a contrasting picture. The national budget deficit is expected to increase from 4.5% of GDP in 2024 to 6.5% by 2030, primarily due to federal government spending. Conversely, the combined deficit of the regional governments is forecast to fall from 1.6% of GDP in 2025 to 0.8% by 2027, stabilising thereafter thanks to spending cuts and the phasing out of regional programmes for recovering from the effects of the pandemic. However, the financial situation in the Brussels Capital Region is expected to deteriorate slightly throughout this period.

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