Belgium’s economy has been resilient to recent energy shocks, but growth prospects remain modest. Enacting new reforms to boost competitiveness and stabilise public finances will be essential to secure sustainable high living standards, according to a new OECD report.
The OECD Economic Survey of Belgium projects GDP growth slowing from 0.9% in 2025 to 0.7% in 2026 before rising to 1.0% in 2027. Inflation is projected at 3.6% in 2026 and 3.4% in 2027, up from 3.0% in 2025.
Belgium’s public debt is high and rising. Containing spending growth and eliminating ineffective tax expenditures are key to consolidate public finances. These efforts can be supported through broader spending reviews and improved public investment planning. Pursuing pension reform by linking the retirement age to life expectancy would also contain rising ageing costs.
Improving Belgium’s competitiveness will require greater investment in skills for the digital and energy transitions and a more flexible wage-setting framework. Strengthening the regulatory framework and making research and development support more effective and efficient would also boost competitiveness.
By 2050, a quarter of Belgium’s population will be aged 65 or older. Expanding home-based care could improve the quality of life for Belgians in long-term care while helping contain costs. Better coordination between health care providers and promotion of healthier lifestyles would also improve efficiency and reduce costs.
Continuing with decarbonisation efforts in the industrial sector would strengthen resilience to future energy shocks. Improving coordination of climate mitigation policies across federal and regional governments, eliminating fossil fuel subsidies and reforming energy taxation would also help Belgium meet climate targets at lower costs while accelerating emissions reductions.
