BELGIUM: Useful Info

In the last 50 years, Belgium has seen an economic boom that has hailed it as Western Europe’s model for a successful liberal democracy.

It is a federal government, having diffused the linguistic, economic, and political differences between its citizens in Flanders, Wallonia and Brussels by granting increasing autonomy to the individual state. Regional and community governments control social services, economic and industrial policies, and can form treaties for issues under their jurisdiction.

Belgium is also one of the world’s most industrialized countries, the biggest factor behind its economic success. It is a prominent player in European politics, being one of the founding members of the European Community (EC) and a staunch supporter of the EU’s efforts to integrate European economies.

Fast Facts

Population: 10.3 million (Source: UN, 2005)
Capital: Brussels
Area: 30,528 sq km (11,787 sq miles)
Major languages: Dutch, French, German
Monetary unit: 1 Euro = 100 cents
Main exports: machinery and electrical equipment, chemicals, vehicles, metals, diamonds
GNI per capita: US $31,030 (Source: World Bank, 2005)

Economic Background

Despite its small size and limited natural resources, Belgium is one of the world’s strongest market economies, largely due to its phenomenal industrialization efforts. It was the first European country to go through an industrial revolution; today, it is a member of the Organization for Economic Cooperation and Development, an alliance of industrialized democracies). This has led to incredible prosperity: Belgium has one of the highest per capita GDP (though 96% is tied to public debt), and the per capita income is a high $34,518—clearly an affluent market that is ready to pay for goods and services.

Belgium and the UK have excellent trade relations. It is the UK's sixth largest export market, with UK exports totaling £10.6 billion (while importing about £11.9 billion from Belgium in return). The country’s location makes it easily accessible even for first-time exporters. Aside from the Channel Tunnel there are many air and sea. UK products are generally viewed as high-quality, though prices must be kept competitive with Belgium’s many other trade partners.

Belgium is also a prime market for exporters of raw materials. With few natural resources, it relies on imports then uses its technology to manufacture or refine the products at a cost-efficient rate. This system is applied to all its industrial sectors: steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics, and machinery fabrication.

Belgium has a very skilled, multi-lingual workforce, reflected in the 74.6% contribution of the services sector to the GDP. In a bid to create employment opportunities for its citizenry, the country has wooed foreign investors and multinational companies to open offices on its shores. Several banks, law firms, public relations, accounting, and executive search firms have already done so; others prefer to infuse money into the manufacturing industry. Some 1500 multinational companies are located there.

About 74% of its trade is with fellow members of the EU. Because of the large difference, the country has consciously begun efforts to diversify and expand trade opportunities outside the EU. This makes it an excellent time for UK firms to explore doing business there.

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