Belgium's economy remains bright after terrorism

It seems that the negative impact on the Belgian economy from the terrorist attacks in Brussels is only temporary.   Belgian economic report released by the European Commission on 3 May forecast that the economic growth of Belgium in 2016 only about 1.2% and the series of terrorist attacks in Brussels last March had a negative impact on the economy of this country.

This short-term forecast is based on a weak export environment and the impact of the bloody terrorist attacks on March 22. Accordingly, Belgium's export growth may fall from 4.6% in 2015 to 4.2% in 2016. Terrorist attacks at Zaventem Airport and the Maelbeek metro station, which killed 32 people and 340 injured, directly affecting the country's "smoke-free" industry, most affected by hotel and tourism services. In addition, these terrorist attacks also reduced the confidence of domestic consumers, significantly affecting economic growth. However, according to the EC forecast, these negative impacts are only temporary. It is forecast that Belgium's export growth will increase to 4.7 percent and the economy will grow by 1.6 percent in 2017. The EC also said that the country's unemployment rate will fall slightly from 8, 5% in 2015 to 7.7% in 2017. After a slump, the salaries of Belgian workers will rise this year. With the reduction of income tax, this move will offset the negative impact of high inflation on purchasing power. Accordingly, household consumption is likely to increase by 1% this year and by 1.3% by 2017. EC said that investments in Belgium increased slightly this year and could reach 3% next year. Budget deficits will increase to 2.8% before falling to 2.3% next year. Government debt is relatively stable at 106.4% of GDP this year and 105.6% in 2017.