Belgian Economy Holds Up Well

In the second quarter of 2011, the Belgian economy grew by 0.7%, according to an estimate by the National Bank . Under current conditions --the global slowdown and the debt crisis in the euro zone-- , this is a surprisingly good result, and is mainly due to the strong demand of the German neighbours.
 
Analysts had counted on average growth of merely 0.3%. Also in Belgium an economic slowdown is occurring, but given the sharp slowdown elsewhere in the world, 0,7% growth is remarkably well, according to the Institute for National Accounts.
 
The previous quarter saw a growth of 1.1%. Year on year, the gross domestic product (GDP) increased by 2.5 percent.
 
Growth in the first quarter was supported by both domestic spending and, more important, strong exports of goods and services. According to the National Bank, Belgium especially benefited from the strong demand from neighboring countries, meaning: Belgium benefits from the economic growth in Germany, which is now more than ever the undisputed locomotive of the euro zone.
 
Future prospects however, look less rosy. The economy in America and China was already slowing down for a while, but also in Europe this slowdown is now a fact. This situation is likely to go on, and European indicators already show that growth figures will continue declining over the coming quarters, according to Belgian economists.