- Lean Economic Growth: The Belgian economy is expected to experience modest growth (around 1.2%), with struggles in industry and construction, while the services sector provides a counterbalance.
- Cooling Inflation: Inflation is projected to normalize to approximately 2% in 2025, following a period of instability in energy prices and higher wage indexation.
- Lower Interest Rates: Central banks are anticipated to cut interest rates, with the European Central Bank likely reducing its policy rate to below 2%, positively impacting mortgages and investment loans.
- Continued Industry Challenges: The manufacturing sector in Belgium is expected to face ongoing difficulties, with a significant contraction in production and low order levels persisting into 2025.
- Increased Labor Strikes: Anticipated wage negotiations and necessary fiscal measures by the government could lead to more strikes and demonstrations from unions advocating for higher wages.
- Barriers to International Trade: The rise in trade barriers, particularly influenced by political factors like Trump’s policies, may lead to a fragmented global economy and increased risks of trade wars.
- Stagnant Labor Market: Employment growth is expected to stall, with more public sector jobs offsetting private sector losses, while skills shortages are likely to worsen due to demographic changes.
- Limited Tax Cuts: The anticipated formation of a new federal government is expected to result in limited tax reforms due to significant budgetary challenges, with serious tax cuts unlikely.
- Sustainable Transition Continues: Despite political pressures, the transition to sustainable practices is expected to persist, with businesses seizing opportunities in the green economy.
- Wider AI Adoption: The use of AI in businesses is set to expand significantly in 2025, particularly among SMEs, which could enhance productivity across the economy.
Source (5) 10 economische voorspellingen voor 2025 | LinkedIn
