2012-11-14 22:14:55 - Belgium Business Forecast Report Q4 2012 - a new country guide report on companiesandmarkets.com

Belgium has enjoyed a robust recovery from the 2008-2009 economic crisis but is heavily exposed to turmoil in the eurozone. A particular concern is the national debt that, at close to 100% of GDP, leaves Belgium vulnerable to a deterioration in risk sentiment and slowdown in economic growth. Although the formation of a new government has ended political paralysis, the six-party coalition could yet struggle to overcome ideological differences in order to tackle much-needed fiscal and economic reform.

Major Forecast Changes

There are no Major Forecast Changes this quarter.

Key Risk To Outlook

Downside Risks To Medium-Term Growth: There are significant downside risks to our economic growth forecasts, particularly stemming from the impact of fiscal consolidation and the eurozone sovereign debt crisis.

 

 

Upside Risks To Inflation: Further euro weakness and the potential for a fresh rally in global energy prices could in turn keep inflation elevated.

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