Belgium Gdp Gap

Central Directorate for Studies and International Relations (DCI / L. Athenosy)

COUNTRY REPORT: BELGIUM Date: 17/10/2011

Moody’s: Aa1 | S&P’s: AA+ | Fitch: AA+ |

Basic indicators

Land area | 30,528 sq. km | Population | 11 million |

Capital | Brussels | | 1 million |

GDP/capita (2010): | | Agriculture/forestry | 1% of GDP |

in USD (current prices) | 42,845 | Industry/construction | 22% of GDP |

in USD at PPP | 36,274 | Services (2010) | 77% of GDP |

Currency | Euro (EUR) = 100 centsExchange rate regime: freely floating EUR/USD = 1.33 on average in 2010 (1.41 forecast for 2011) |

Data: IMF, EIU

Economic indicators | 2007 | 2008 | 2009 | 2010 | 2011f | 2012f |

Real GDP growth | (%) | 2.8 | 0.8 | -2.7 | 2.1 | 2.4 | 1.5 |

Consumer price inflation* | (%) | 1.8 | 4.5 | 0.0 | 2.3 | 3.2 | 2.6 |

Unemployment rate* | (%) | 7.5 | 7.0 | 8.0 | 8.4 | 7.9 | 8.1 |

General government balance | (% of GDP) | -0.2 | -1.3 | -5.9 | -4.1 | -3.6 | -2.8 |

Gross government debt | (% of GDP) | 84.2 | 89.6 | 96.2 | 96.8 | 97.0 | 97.5 |

Current account balance | (% of GDP) | 1.6 | -1.8 | 0.0 | 1.0 | 0.6 | 0.9 |

Data: IMF WEO September 2011; DG ECFIN September 2011 (2011-12 forecasts; * annual average)

Politics

* Belgium, officially the Kingdom of Belgium, is a constitutional monarchy under (currently) King Albert II (since 1993) and a federal state, which is divided into three regions, Flanders, Wallonia and Brussels-Capital. The regions and communities have their own parliaments and executives, and power has been increasingly devolved to them. Regional elections are held every five years, the next ones being due in June 2014. Provincial and municipal elections are held every six years, most recently in October 2006.

* Belgium’s mainstream political parties are close to a deal to end a political crisis between the Flemish and French-speaking communities that has left the country without a fully functioning...