“Belgian economy to reach pre-corona size by end of 2022”

A forecast from the European commission suggests that by the second half of next year the Belgian economy will be as big as it was before the start of the pandemic.  The commission is forecasting that the Belgian economy will grow by 3.9% this year.

National Bank figures show the Belgian economy shrank by 6.2% last year while the average fall across the EU was 6.8%.

Economic growth in Belgium of 3.9% compares favourably with the predicted Eurozone average of 3.8%, though next year the Belgian growth figure of 3.1% would be lower than that forecast for the Eurozone 3.8%.

The commission believes corona measures will stay in place for a while yet.  This impacts on consumption, but with economic support measures in place job losses and bankruptcies will remain limited.

Vaccinations should allow an easing of restrictions and enable people to spend cash they saved during the lockdown boosting the economy.

The forecasts could still be steered off course by the pandemic, new variants and progress in the vaccination campaign or a lack of it.

Inflation too is set to make a comeback, from 0.4% last year to 1.8% this year and next.

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