Capital City: Brussels
	It is %T:%M %A in Brussels

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Economic trends

Belgium is a highly developed market economy with per capita GDP ranking among one of the highest in the world (the per capita income was USD35,660 in 2006). The GDP growth was only 1.4% in 2005 whereas it was 3.0% in 2006 and 2,6% in 2007. However, IMF forecasts a slower growth of 1.9% in 2008. This moderate growth is because of a weak domestic as well as external demand for Belgian products; 75% of the exports are made to EU members. In addition, strong appreciation of Euro has made the Belgian exports less competitive. The unemployment rate is arround 7.4%. The decision of the German car maker Volkswagen to close its plant in Belgium (due to high labour costs) is going to lead to more unemployment besides affecting the exports. The federal government has managed to present balanced budgets in recent years, but public debt remains high.

Main branches of industry

The Belgian agricultural sector contributes nearly 1.4% to the country's GDP and thus plays a much lesser role in its economy as compared to other European countries. Animal breeding and dairy production are the main agricultural activities. The industrial sector contributes nearly 27% to the GDP. The Belgian industrial sector can be compared to a complex processing machine: it imports raw materials and semi-finished goods that are further processed and re-exported. Except for coal, which is no longer economical to exploit, Belgium has virtually no natural resources. Nonetheless, most of the traditional industrial sectors are present in the economy, which include steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles and machinery fabrication. Among the new industries, the biotechnology sector is growing rapidly. Despite a strong industrial sector, services account for nearly 75% of the GDP.

International trade

Belgium has a very open economy, one of the world's preferred destinations for foreign investments. Foreign investments have contributed significantly to Belgian economic growth even from 1960s. The three top investors are Luxemburg, the Netherlands and France. Belgium's top three import partners are: the Netherlands, Germany, and France. The country mainly imports mineral fuels & oils, chemicals and pharmaceutical products, vehicles, and machinery. The top three export partners are: Germany, France and the Netherlands. The main export commodities are: vehicles, pharmaceutical products, machinery and organic chemicals.