Belgium has a highly developed market economy and enjoys a GDP per capita that is among the highest in the world. Belgium’s economic growth has been outpacing the euro area average since 2002.
Economy
According to the Organisation for Economic Co-operation and Development (OECD), a group of leading industrialised nations, the Belgian economy grew by 2.9 per cent in 2006 and 2.6 per cent in 2007. Growth figures for 2008 stood at 1.1 per cent, reflecting an economic slowdown as a result of credit tightening, failing consumer and business confidence. The economy is forecast to contract by more than four per cent in 2009 and by 0.6 per cent in 2010. A recovery is expected in 2011 as consumer demand picks up and investment grows.
Investment Climate
A small but densely populated country, located at the heart of one of the most economically active regions in the world, Belgium has an extremely open economy. The country is highly dependent on imports and international trade for its well-being.
Foreign investment has played a vital role in the Belgian economy for decades, providing technology and employment. Both the federal and the regional governments encourage foreign investment on a national treatment basis. Foreign corporations account for about one-third of the top 3,000 corporations in Belgium. Alongside this, the country has been chosen as the home of Europe’s decision making bodies. As a result Belgium offers unique opportunities for companies seeking an advantageous location for distribution or headquarters.
Automotives
Belgium is major player in the automotive assembly sector. With plants like Opel Antwerp , Ford Genk, Audi Forest / Brussels, Volvo Europa in Ghent, Van Hool (buses) and Truco, Belgium can rightly claim to have established a strong foothold in the vehicle production market. Toyota also chose the country as the location for its European headquarters, with Toyota Motor Marketing Europe authorised to promote and sell vehicles on the strong and fiercely competitive European market.
Over the past 20 years Belgium has turned out an average of 1,000,000 vehicles a year, most of them destined for export. Most of the vehicles produced are for private use, but the second major group comprises vehicles designed to transport passengers and freight.
Belgium is an attractive country for vehicle manufacturers because it offers multiple benefits. Not only does it offer a highly qualified workforce with a proven track record of high productivity; it also has the ports required for rapid distribution and research centres to test parts and components and investigate the potential offered by new technologies.
Opportunities
Belgium is an open and highly competitive market, with opportunities in most sectors, especially for small and medium-sized business. Belgians place a premium on nonprice factors such as design, quality, delivery and after sales service. UK goods and services are generally held in high regard, but must be of high quality and competitively priced.
The following have been identified as target sectors for UK companies in Belgium:
• Software & computer services
• Telecoms • Chemicals
• Consumer goods
• Food and drink
• Gardening
• Biotechnology and pharmaceuticals
• Mechanical and electrical engineering
• Security
• Water UK Trading Relationship
Bilateral trade between the UK and Belgium is strong, the two countries are major trading partners. In 2008, the UK exported goods worth £13 billion, representing an increase on figures for 2007. Imports over the same period also grew to more than £16 billion.
KEY FACTS
Official Name: Kingdom of Belgium
Capital: Brussels
Area: 30,528 sq km
Population: 10.5m (UN, 2008)
Major language: Dutch, Flemish, French,
GDP (current): US$452.75bn (World Bank, 2007)
GDP growth: 2.8% (World Bank, 2007)
GNI per capita: US$41,110 (World Bank, 2007)
Inflation (consumer prices): 4.5% (2008 est.)
Labour force: 4.99m (2008 est.)
Unemployment: 6.5% (2008 est.)
Monetary unit: 1 euro = 100 cents
Exports to UK: £16,099.51m (HMRC 2008)
Imports from UK: £13,044.52m (HMRC 2008)
Main Industries
Engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, basic metals, textiles, glass, petroleum.
Main Exports
Machinery and equipment, chemicals, finished diamonds, metals, vehicles.
Main Imports
Machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products.
CONTACTS
UK Trade & Investment
Kingsgate House
66-74 Victoria Street
London SW1E 6SW
Tel: 020 7215 8000
Email: belgium.uktradeinvest@fco.gov.uk
Web: www.uktradeinvest.gov.uk
British Embassy
Rue d’Arlon 85 Aarlenstraat
1040 Brussels
Tel: 00 32 2 287 6211
Email: info@britain.be
Web: www.ukinbelgium.fco.gov.uk/en
Embassy of Belgium
17 Grosvenor Crescent
London SW1X 7EE
Tel: 020 7470 3700
Email: london@diplobel.be
Web: www.diplomatie.be/london
