Real economic growth

Real economic growth (open definition) of the gross domestic product (open definition) (GDP) in Flanders is estimated at 1.4% in 2024. In 2024, economic growth is mainly driven by private consumption and business investment. Exports do not contribute. In 2025, private consumption will remain important for economic growth and exports will benefit from the recovery of foreign trade.

In 2010 and 2011, the Flemish economy partially recovered from the 2009 recession (open definition) , but in the following years the debt and euro crises reared their heads. This was accompanied by an accumulation of debt, primarily in Mediterranean countries and created tensions in the euro area. From 2014 to 2019, the growth in Flanders was always close to 2%, or just above (2015). 2020 saw strong negative growth (-4.9%) as a result of the COVID-19 crisis. In 2021 (+8.4%), the economy recovered from the COVID-19 slump. That recovery continued in 2022 (+3.4%), despite the war in Ukraine and rising energy prices. In 2023, growth weakened to 1.6%.

The real increase in labour productivity largely determined the development of the Flemish real GDP in 2020 and 2021. Employment was less affected by the COVID-19 crisis due to supportive measures such as temporary unemployment and bridging rights. In 2022 and 2023, employment trends are dominant. Labour productivity and employment are expected to be about equally important for economic growth in 2024 and 2025.

In the 2010-2015 period, the evolution of labour productivity played a dominant role in economic growth. In the 2016-2019 period, the evolution of employment played the dominant role.

In 2021, the economy recovered from the recession caused by the Covid-19 crisis. Growth rates were therefore quite high that year, especially in the Flemish Region (+8.4%). In the Walloon and Brussels regions, real GDP growth came in at 4.8% and 4.6%. The EU27 average came to 6% in 2021. Among our neighbours, France and the Netherlands (6.4% and 6.2%) did better than Germany (3.2%). Ireland, Croatia and Malta had the strongest growth rates.

Real GDP growth weakened in 2022 and further in 2023. The Flemish Region recorded the highest growth rates in Belgium in 2022 and 2023 and together with the Brussels Region in 2024 (+1.4%). That would be more than in the EU27 (+1.0%).