Belgium: GDP growth records best result since Q2 2022 in the fourth quarter
Growth gained momentum in the final quarter of 2023, with GDP expanding 0.5% on a seasonally adjusted quarter-on-quarter basis according to a preliminary estimate (Q3: +0.4% s.a. qoq). Q4’s reading marked the strongest increase since Q2 2022. On an annual basis, economic growth improved to 1.6% in Q4, from the previous period’s 1.4% expansion. Q4’s reading marked the best result since Q1.
According to the preliminary assessment, in quarter-on-quarter terms the construction sector experienced a 1.0% increase in value-added, while the services sector expanded 0.7%. On the other hand, the manufacturing industry shrank 0.6%.
Commenting on the outlook for the construction sector, ING’s Wouter Thierie and Maurice van Sante stated:
“So, 2024 promises to be a weaker year for the construction sector, but the long-term outlook is still favourable. We are on the eve of a major renovation wave. 85% of homes do not currently meet 2050 energy standards. The number of home improvements needs to be quadrupled to meet climate targets by 2050. Belgium’s public infrastructure, such as highways and railways, is severely outdated and in need of major refurbishment in the coming decades.”