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Belgium vs. Netherlands

Economy

BelgiumNetherlands
Economy - overview

Belgium's central geographic location and highly developed transport network have helped develop a well-diversified economy, with a broad mix of transport, services, manufacturing, and high tech. Service and high-tech industries are concentrated in the northern Flanders region while the southern region of Wallonia is home to industries like coal and steel manufacturing. Belgium is completely reliant on foreign sources of fossil fuels, and the planned closure of its seven nuclear plants by 2025 should increase its dependence on foreign energy. Its role as a regional logistical hub makes its economy vulnerable to shifts in foreign demand, particularly with EU trading partners. Roughly three-quarters of Belgium's trade is with other EU countries, and the port of Zeebrugge conducts almost half its trade with the United Kingdom alone, leaving Belgium's economy vulnerable to the outcome of negotiations on the UK's exit from the EU.

Belgium's GDP grew by 1.7% in 2017 and the budget deficit was 1.5% of GDP. Unemployment stood at 7.3%, however the unemployment rate is lower in Flanders than Wallonia, 4.4% compared to 9.4%, because of industrial differences between the regions. The economy largely recovered from the March 2016 terrorist attacks that mainly impacted the Brussels region tourist and hospitality industry. Prime Minister Charles MICHEL's center-right government has pledged to further reduce the deficit in response to EU pressure to decrease Belgium's high public debt of about 104% of GDP, but such efforts would also dampen economic growth. In addition to restrained public spending, low wage growth and higher inflation promise to curtail a more robust recovery in private consumption.

The government has pledged to pursue a reform program to improve Belgium's competitiveness, including changes to labor market rules and welfare benefits. These changes have generally made Belgian wages more competitive regionally, but have raised tensions with trade unions, which have called for extended strikes. In 2017, Belgium approved a tax reform plan to ease corporate rates from 33% to 29% by 2018 and down to 25% by 2020. The tax plan also included benefits for innovation and SMEs, intended to spur competitiveness and private investment.

The Netherlands, the sixth-largest economy in the European Union, plays an important role as a European transportation hub, with a consistently high trade surplus, stable industrial relations, and low unemployment. Industry focuses on food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but provides large surpluses for food-processing and underpins the country's status as the world's second largest agricultural exporter.

The Netherlands is part of the euro zone, and as such, its monetary policy is controlled by the European Central Bank. The Dutch financial sector is highly concentrated, with four commercial banks possessing over 80% of banking assets, and is four times the size of Dutch GDP.

In 2008, during the financial crisis, the government budget deficit hit 5.3% of GDP. Following a protracted recession from 2009 to 2013, during which unemployment doubled to 7.4% and household consumption contracted for four consecutive years, economic growth began inching forward in 2014. Since 2010, Prime Minister Mark RUTTE's government has implemented significant austerity measures to improve public finances and has instituted broad structural reforms in key policy areas, including the labor market, the housing sector, the energy market, and the pension system. In 2017, the government budget returned to a surplus of 0.7% of GDP, with economic growth of 3.2%, and GDP per capita finally surpassed pre-crisis levels. The fiscal policy announced by the new government in the 2018-2021 coalition plans for increases in government consumption and public investment, fueling domestic demand and household consumption and investment. The new government's policy also plans to increase demand for workers in the public and private sector, forecasting a further decline in the unemployment rate, which hit 4.8% in 2017.

GDP (purchasing power parity)$596.414 billion (2019 est.)

$586.192 billion (2018 est.)

$575.757 billion (2017 est.)

note: data are in 2010 dollars
$986.847 billion (2019 est.)

$970.567 billion (2018 est.)

$948.181 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate1.41% (2019 est.)

1.49% (2018 est.)

1.9% (2017 est.)
1.63% (2019 est.)

2.32% (2018 est.)

3.02% (2017 est.)
GDP - per capita (PPP)$51,934 (2019 est.)

$51,299 (2018 est.)

$50,615 (2017 est.)

note: data are in 2010 dollars
$56,935 (2019 est.)

$56,325 (2018 est.)

$55,348 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 0.7% (2017 est.)

industry: 22.1% (2017 est.)

services: 77.2% (2017 est.)
agriculture: 1.6% (2017 est.)

industry: 17.9% (2017 est.)

services: 70.2% (2017 est.)
Population below poverty line14.8% (2018 est.)13.6% (2019 est.)
Household income or consumption by percentage sharelowest 10%: 3.4%

highest 10%: 28.4% (2006)
lowest 10%: 2.3%

highest 10%: 24.9% (2014 est.)
Inflation rate (consumer prices)1.4% (2019 est.)

2% (2018 est.)

2.1% (2017 est.)
2.6% (2019 est.)

1.7% (2018 est.)

1.3% (2017 est.)
Labor force4.122 million (2020 est.)8.907 million (2020 est.)
Labor force - by occupationagriculture: 1.3%

industry: 18.6%

services: 80.1% (2013 est.)
agriculture: 1.2%

industry: 17.2%

services: 81.6% (2015 est.)
Unemployment rate5.36% (2019 est.)

5.96% (2018 est.)
3.41% (2019 est.)

3.84% (2018 est.)
Distribution of family income - Gini index27.4 (2017 est.)

28.7 (1996)
28.5 (2017 est.)

25.1 (2013 est.)
Budgetrevenues: 253.5 billion (2017 est.)

expenditures: 258.6 billion (2017 est.)
revenues: 361.4 billion (2017 est.)

expenditures: 352.4 billion (2017 est.)
Industriesengineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, pharmaceuticals, base metals, textiles, glass, petroleumagroindustries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics, fishing
Industrial production growth rate0.2% (2017 est.)3.3% (2017 est.)
Agriculture - productssugar beet, milk, potatoes, wheat, pork, lettuce, poultry, maize, barley, pearsmilk, potatoes, sugar beet, pork, onions, wheat, poultry, tomatoes, carrots/turnips, beef
Exports$474.278 billion (2019 est.)

$469.48 billion (2018 est.)

$466.732 billion (2017 est.)
$857.574 billion (2019 est.)

$835.759 billion (2018 est.)

$801.942 billion (2017 est.)
Exports - commoditiescars and vehicle parts, refined petroleum, packaged medicines, medical cultures/vaccines, diamonds, natural gas (2019)refined petroleum, packaged medicines, broadcasting equipment, photography equipment, computers (2019)
Exports - partnersGermany 17%, France 14%, Netherlands 13%, United Kingdom 8%, United States 6%, Italy 5% (2019)Germany 20%, Belgium 12%, United Kingdom 9%, France 7%, United States 5% (2019)
Imports$473.129 billion (2019 est.)

$469.546 billion (2018 est.)

$463.706 billion (2017 est.)
$755.65 billion (2019 est.)

$732.865 billion (2018 est.)

$700.657 billion (2017 est.)
Imports - commoditiescars, refined petroleum, packaged medicines, medical cultures/vaccines, diamonds, natural gas (2019)crude petroleum, refined petroleum, broadcasting equipment, computers, cars (2019)
Imports - partnersNetherlands 16%, Germany 13%, France 10%, United States 8%, Ireland 5%, China 5% (2019)Germany 15%, China 11%, Belgium 9%, United States 8%, Russia 7%, United Kingdom 5% (2019)
Debt - external$1,317,513,000,000 (2019 est.)

$1,332,358,000,000 (2018 est.)
$4,345,413,000,000 (2019 est.)

$4,625,016,000,000 (2018 est.)
Exchange rateseuros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt103.4% of GDP (2017 est.)

106% of GDP (2016 est.)

note: data cover general government debt and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions; general government debt is defined by the Maastricht definition and calculated by the National Bank of Belgium as consolidated gross debt; the debt is defined in European Regulation EC479/2009 concerning the implementation of the protocol on the excessive deficit procedure annexed to the Treaty on European Union (Treaty of Maastricht) of 7 February 1992; the sub-sectors of consolidated gross debt are: federal government, communities and regions, local government, and social security funds
56.5% of GDP (2017 est.)

61.3% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment, debt instruments for the social funds are not sold at public auctions
Reserves of foreign exchange and gold$26.16 billion (31 December 2017 est.)

$24.1 billion (31 December 2015 est.)
$38.44 billion (31 December 2017 est.)

$38.21 billion (31 December 2015 est.)
Current Account Balance$1.843 billion (2019 est.)

-$4.135 billion (2018 est.)
$90.207 billion (2019 est.)

$98.981 billion (2018 est.)
GDP (official exchange rate)$533.028 billion (2019 est.)$907.042 billion (2019 est.)
Credit ratingsFitch rating: AA- (2016)

Moody's rating: Aa3 (2011)

Standard & Poors rating: AA (2011)
Fitch rating: AAA (1994)

Moody's rating: Aaa (1986)

Standard & Poors rating: AAA (2015)
Ease of Doing Business Index scoresOverall score: 75 (2020)

Starting a Business score: 92.3 (2020)

Trading score: 100 (2020)

Enforcement score: 64.3 (2020)
Overall score: 76.1 (2020)

Starting a Business score: 94.3 (2020)

Trading score: 100 (2020)

Enforcement score: 59.9 (2020)
Taxes and other revenues51.3% (of GDP) (2017 est.)43.4% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1% (of GDP) (2017 est.)1.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 14.2%

male: 16%

female: 12.3% (2019 est.)
total: 6.7%

male: 7.3%

female: 6.2% (2019 est.)
GDP - composition, by end usehousehold consumption: 51.2% (2017 est.)

government consumption: 23.4% (2017 est.)

investment in fixed capital: 23.3% (2017 est.)

investment in inventories: 1.3% (2017 est.)

exports of goods and services: 85.1% (2017 est.)

imports of goods and services: -84.4% (2017 est.)
household consumption: 44.3% (2017 est.)

government consumption: 24.2% (2017 est.)

investment in fixed capital: 20.5% (2017 est.)

investment in inventories: 0.2% (2017 est.)

exports of goods and services: 83% (2017 est.)

imports of goods and services: -72.3% (2017 est.)
Gross national saving25.3% of GDP (2019 est.)

24.8% of GDP (2018 est.)

25.2% of GDP (2017 est.)
31.2% of GDP (2019 est.)

31.8% of GDP (2018 est.)

31.4% of GDP (2017 est.)

Source: CIA Factbook