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2020 Country Focus: Belgium

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Economic news

Despite the steady creation of jobs and a weakening of inflation, the Belgian economy is still growing slowly, with analysts predicting the growth rate at 1.1% in 2020 and 1.3%in 2021.

For 2020, the projections indicate an increase of 37’300 units in employment, resulting in a decrease of 14’000 in the number of job seekers. The general consumer prices are expected to rise by 1.5%, and the government budget deficit shall increase by 1.7% of the GDP.

As such, the low growth rates are mostly due to looming uncertainties both at national and international levels.

At the domestic level, although the economy stays healthy on account of an upbeat private consumption, the political situation without a federal government as negotiations are dragging on is worrisome. As a result of the lack of coordination, regional governments are beginning to ramp up expenditure, and the fiscal deficit is widening. Moreover, Consumer confidence in Belgian companies has also deteriorated sharply since the beginning of the year

On the international front, lingering uncertainties stemming from Brexit and a subdued Eurozone backdrop and the trade war between China and the United States continue to cloud the outlook, and weight on investment.

The resulting decline in the growth rate of the global economy, and that of the eurozone also negatively impact the Belgian economy.

Vanbreda Credinco team

Trade Credit Insurance Market

Although there are no available Belgian figures to determine the exact share of credit insurance in this, the total premium for credit insurance and bonding amounts to 167 million euros in 2018.

In terms of the collected premium, following the 2017 growth of 2.9%, the Belgian credit insurance market fell by 4.8% in 2018, and the total number of insured companies shrunk from 6,400 to 6,000 between 2017 and 2018.

What’s new for you?

In May 2018, VĂ©ronique Sys joined Vanbreda Credinco. Her main task is administrative support for the team.

Vanbreda Credinco continues to grow. The portfolio grows annually due to excellent retention rates, contract extensions, and good results in terms of new business.