The Belgian National Bank warns of the worsening public debt
BRUSSELS, 12 NOVEMBER WAM / The Belgian National Bank warned of the deterioration of the country’s public finances, describing the outlook for public debt as “worrying”, even though debt levels in other countries such as France, Italy, the United States and Japan are higher than Belgium.
The bank explained in its data that Belgian public debt amounts to about 104% of gross domestic product, compared to 113% in France, 135% in Italy, 122% in the United States, and 236% in Japan, warning that focusing on overall numbers hides deeper structural weaknesses.
He noted that the sustainability of the debt does not depend only on its current level, but rather on future borrowing needs, financial trends, and general economic dynamics, noting that these factors reveal great fragility in the economies of the five countries.
The bank expected the Belgian budget deficit to rise to 5.6% of GDP by 2027, expressing its concern about the rise in annual government financing requirements to about 20% of GDP.
However, he noted that Belgium’s positive external position and net foreign investments give it some resilience thanks to citizens’ savings.
The bank described the expected increase in public debt as “worrying” due to the ongoing fiscal deficit, high interest costs and expenses related to the aging of the population.
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