Federation of Belgian Enterprises warns of economic recession
Belgium’s economy is on the verge of recession, the Federation of Belgian Enterprises (VBO/FEB) has warned. The organisation urges a quick federal government formation.
The federation's latest survey shows that only the ICT sector expects revenue growth in the next six months, while 45 per cent of industries predict declining activity. Private sector job losses are also mounting: 55 per cent of sectors have been cutting employment since mid-2024.
“After the pandemic and the energy crisis, we’ve reached a competitiveness crisis,” said VBO/FEB chief economist Edward Roosens. According to the federation, Belgium faces a “triple handicap”: high labour costs, soaring energy prices and heavy administrative burdens. This has weakened competitiveness, eroded export market share and driven business investment into a three-year decline.
"After the pandemic and the energy crisis, we’ve reached a competitiveness crisis"
If no changes are made, Belgium will plunge into a recession, the federation warned. VBO/FEB CEO Pieter Timmermans called for urgent reforms to strengthen the economic fabric and competitiveness. This, he said, would also help to balance the government budget, one of the key issues in the ongoing federal government negotiations.
Timmermans also warned against new “taxes on success”, such as a capital gains tax, as they could further weaken the economy, he said.
VBO/FEB chief economist Edward Roosens and CEO Pieter Timmermans © BELGA PHOTO LAURIE DIEFFEMBACQ
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