Belgium

The economy has been resilient to a series of shocks, but growth is slowing, and disinflation is facing headwinds. The labor market has been strong but shows early signs of cooling. Labor-cost competitiveness has declined with wage growth outpacing sluggish productivity. Successive shocks have increased structural fiscal deficits and public debt. Protracted coalition negotiations after elections in June 2024 stalled policymaking; a new federal government was formed in February 2025.