Belgian economy grew more than anticipated in third quarter, inflation stabilises
The Belgian economy grew by 0.3 per cent in the third quarter of 2024, compared with the previous quarter, the National Bank of Belgium announced on Friday. A first estimate had put growth at just 0.2 percent. On an annual basis, the Belgian economy grew by 1.2 per cent in the third quarter of this year.
The services sector in particular performed better than expected, with growth of 0.4 per cent in the third quarter, compared with an estimate of 0.2 per cent. The construction sector also performed better, growing by 0.2 per cent instead of the expected stagnation. In industry, however, value added fell by 0.1 per cent, in line with initial estimates.
According to the National Bank, business investment fell by 3 per cent in the third quarter due to "significant investments in information and communication services in the second quarter".
At -0.1 per cent, net exports also made a negative contribution to economic growth. Domestic employment barely grew, with only 1,500 more people employed than in the second quarter of this year.
Stable inflation
Meanwhile, inflation remained stable, the Belgian statistics office Statbel announced on Thursday. The annual rate of price increases was 3.2 per cent in November, the same level as in October. The health index, which is used to determine wage indexation, also remained stable at 3.63 per cent.
The main price increases in November were for clothing, natural gas (111.3 per cent), electricity (15.2 per cent), household appliances and repairs, holiday villages and bread and cereals. On the other hand, prices fell for holidays abroad and city breaks, air tickets and hotel rooms.
Across the eurozone, life became 2.3 per cent more expensive this month, according to a first estimate by the European statistics office Eurostat. This means that inflation has once again exceeded the European Central Bank's (ECB) target of 2 per cent.
The ECB has already cut interest rates three times this year and is expected to do so again in December. It remains to be seen how its interest rate policy will evolve if inflation continues to pick up.
© BELGA PHOTO JONAS ROOSENS
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