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Economic recession looms

The Belgian economy is heading for recession in coming months, albeit a small one.  Belgium’s central bank bases its concerns on a survey of 4,500 businesses and self-employed workers. 

A recession means the economy is shrinking for two quarters in a row.  Higher energy and wage costs are to blame.  More and more businesses are cutting back production or services.

National bank economist Geert Langenus: “That’s what the results of this survey show: a third of businesses started to reduce operations in September because it’s no longer profitable to produce at full capacity.  If you look at the macroeconomics it means growth may be slightly negative during the 3rd quarter.  On the basis of what we are seeing today that may also be the case during the fourth quarter.  We believe the recession heading our way will be limited in time and size and that a recovery will materialise in 2023”.

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