Belgium: GDP increased by 0.4% QoQ in Q2 2015

The flash estimate of the National Bank of Belgium recently released showed a non-annualised growth of 0.4% QoQ in 2Q 2015 (1.3% YoY). First quarter growth has also been slightly revised upwards to 0.4% (from 0.3%). These numbers are fully in line with our expectations. Even if no component data are available yet, one can expect that on the demand side, both domestic demand and net exports have been supportive for growth. Indeed, confidence indicators pointed to a recovery of private consumption and corporate investment. Moreover, as Belgium is a small open economy, the depreciation of the euro is likely to boost exports.

All in all, the figure released is positive. It shows that the gradual recovery is still on track, and some acceleration is even observable. Taken together with the much stronger Q2 growth in Spain (1.0% QoQ) it can be considered as a good sign for the whole of the Eurozone (to be confirmed in the coming days).

Up to now, the recovery has been too weak to push down the unemployment rate (8.6% in July). Having said that, if the recovery continues at the same rhythm, the labour market could start feeling the positive effects of growing activity before the end of the year.

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For more information :

ING press office : 02 547 24 84, pressoffice@ing.be

Philippe Ledent, Senior economist, +32 2 547 31 61, philippe.ledent@ing.be