The economy of Belgium is showing increasing signs of strain, with indicators pointing to a deepening downturn that has accelerated in the wake of ongoing global tensions, including conflicts in the Middle East.
According to the latest report by the Federal Public Service Economy, the country’s exports have declined by 4 percent, pushing Belgium down to 19th place in global export rankings and reducing its share of the global market to 1.8 percent.
The weakening external trade performance reflects broader structural pressures on the Belgian economy, which has been struggling to regain momentum since the outbreak of the Russia-Ukraine War. Analysts note that rising costs, supply chain disruptions, and geopolitical instability have continued to weigh heavily on economic activity.
Fresh data released by Statbel further underscores the severity of the situation. In March alone, 1,206 companies declared bankruptcy, marking a sharp 25.4 percent increase compared to the previous month. This represents the highest level recorded for the same period since 2015.
The wave of bankruptcies has been particularly pronounced in key sectors such as construction, retail, information and communication technologies, professional services, and other service industries.
The construction sector has been hit hardest, recording 273 bankruptcies in March — the highest figure ever registered in the sector. As a direct consequence of the closures, a total of 2,948 people lost their jobs during the same period, marking the first time unemployment linked to bankruptcies has reached such levels since 2019.
Economists warn that the convergence of external shocks and internal vulnerabilities is creating sustained pressure on Belgium’s economic outlook. While the Russia-Ukraine war initially triggered the slowdown, recent geopolitical developments — including heightened instability in the Middle East — are seen as compounding existing fragilities.
The data points to a challenging period ahead for Belgium, as policymakers face growing pressure to stabilize the economy, support struggling sectors, and mitigate the social impact of rising business failures. (ILKHA)