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Belgian budget deficit highest of the Eurozone

The European commission is forecasting a big jump in Belgium’s budget deficit if no action is taken.  This year’s deficit is set to rise to 1.7% of national output, while by 2021 the figure could rise to 2.6%.  Together with Italy Belgium is on course for the highest deficit in the Eurozone. 

The forecast for this year is bad news for the Belgian government. As recently as this spring the commission thought the deficit could be limited to 1.3% of GDP.

If government policy fails to change and change is unlikely as long as the country is governed by a caretaker administration the deficit is forecast to rise to 2.3% next year and 2.6% in 2021.

The commission is forecasting economic growth of 1.1% this year, a touch lower than this spring.  With this figure Belgium exactly hits the growth average for the Eurozone.