2023-07-28 09:04:33
GDP in Belgium grew by only 0.2% in the second quarter of 2023, half as much as expected.
GDP has rose 0.2% in the second quarter of 2023 compared to the previous quarter, according to estimates published this Friday by the National Bank of Belgium (NBB). At the beginning of June, the BNB was still saying expect 0.4% growth in the second quarter. It was then counting on continued growth in household consumption at a relatively stable pace, in particular thanks to the rebound in purchasing power – a rebound due to the significant indexation from which many employees benefited on 1 January.
Over one year, growth stood at 0.9%still according to the figures published this Friday by the BNB, a figure perfectly in line with the growth projections published in June by the European Central Bank for the whole of the euro zone.
Value added in industry fell by 1% in the second quarter compared to the previous quarter, when it was already negative.
According to a first estimate by the BNB, it is the industry which is the cause of this slowdown growth in the second quarter of 2023: added value there fell back by 1.0% compared to the previous quarter, when it was already negative, at -0.6%. In services, activity still shows positive growth, up to 0.5%, but lower than that of the first quarter, which amounted to 0.7%. And in construction, added value was up slightly by 0.1%, against 0.2% in the previous quarter.
The BNB stresses, however, that these growth estimates are “marked with a high uncertaintyas has been the case since the beginning of the Covid-19 crisis and its disruptive consequences on the accuracy of estimation models.”
Inflation remained almost stable in July
Inflation remained almost stable in July at 4.14% against 4.15% in June, according to data published Friday by the Belgian statistics office Statbel. Core inflation, which does not take into account the evolution of the prices of energy products and unprocessed food products, stood at 7.88% in July, against 8.14% in June.
The main price increases recorded in July relate to:
- the plane tickets,
- electricity,
- hotel rooms,
- natural gas,
- the vegetables,
- fire insurance,
- organized holidays in Belgium,
- restaurants and cafes,
- fish and seafood.
Alcoholic beverages and liquid fuels however, had a downward effect on the index.
Inflation for food products (including alcoholic beverages) reached 13.23% in July, against 14.43% in June. The contribution of food products to inflation is currently 2.56 percentage points.
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