Belgium’s efforts to reduce its budget deficit are likely to slow economic growth in the coming years, according to economists at ING Belgium.
Chief economist Peter Vanden Houte said Belgium faces a difficult financial challenge. Rising pension and social spending due to an ageing population, together with higher defence and interest costs, will put pressure on public finances.
ING expects Belgium’s economy to grow more slowly than the average for the eurozone in the years ahead. The bank also noted that investors remain sceptical about the government’s ability to improve the country’s finances, although it does not expect Belgium’s credit rating to be downgraded this year.
Across the eurozone, growth is also expected to remain weak, reaching no more than 0.5% in 2026. Consumer confidence has been hurt by higher energy costs, while slower job market growth could reduce spending.
In contrast, ING is more optimistic about the United States. Strong investment in technology and the growing use of artificial intelligence are helping to boost productivity. The bank forecasts US economic growth of around 2% this year.
Despite economic uncertainty, ING’s chief strategist, Vincent Juvyns, remains cautiously positive about financial markets. He sees opportunities in technology, financial services, healthcare and emerging markets. In bond markets, he favours high-yield and emerging-market debt, while renewable energy infrastructure remains attractive for long-term investors.
ING also believes inflation will ease slightly in the second half of the year, but could remain above central bank targets. As a result, another interest rate rise by the European Central Bank remains possible later in 2026.
© BELGA PHOTO ERIC LALMAND