In 2019 the number of Belgian business insolvencies will still be higher than the levels seen before the start of the global credit crisis in 2008.
High level of corporate insolvencies remains
Belgian corporate insolvencies are expected to increase slightly in 2019 after a modest 1% decrease in 2018. With about 10,075 cases forecast this year, the number of insolvencies will still be higher than the levels seen before the start of the global credit crisis in 2008 (about 7,700 cases in 2007).
Domestic demand drives growth
Belgian economic growth slowed in 2018, and is expected to remain below 1.5% in 2019 and 2020. Besides domestic demand, public investment will contribute to economic activity with the launch of some major public investment projects.
The UK is an important main export market for Belgium, especially for industries like transport equipment, textiles, and chemicals, which could be negatively affected by the UK leaving the EU.
The fiscal deficits should increase again in 2019 and 2020 while central government debt remains high at about 100% of GDP, one of the highest in the European Union in terms of the government debt-to-GDP ratio. More fiscal consolidation seems to be necessary in the medium term.