The Heart of Industry in Western Europe: Belgium

Belgium, or officially the Kingdom of Belgium, is an EU member state located in Western Europe. This country, which has a small land area but is economically advanced and has coastline on the Atlantic Ocean, borders France, Germany, Luxembourg and the Netherlands. Belgium, which has many rivers and lakes, has its geographic location influence the country's economy and trade. In particular, its proximity to its neighbours (France, Germany, Luxembourg and the Netherlands) and the developed highways, rail systems, inland waterways, ports and air transport facilities have a positive impact on its economy. As is known, the population in many Western European countries is ageing. With declining birth rates and increasing life expectancy, Belgium is one of these countries. However, migration to the country is offsetting this population decline.

"Belgium was the first continental European country to participate in the industrial revolution in the 19th century."

Advanced Economic Structure

Belgium ranks among the world's developed market economies. The country has developed imports and exports. Its foreign trade structure is based mainly on processing imported raw materials and semi-finished goods for export. The economy is dominated by steel, chemicals, refining, textiles, food processing, pharmaceuticals, electronics and machinery. In particular, the service sector makes up approximately 75% of GDP. Due to its land area and geographic conditions, agriculture has no significant place in the country's economy. Belgium, among the first countries to industrialize in European history, has an integrated structure that moves in line with neighbouring countries' industries thanks to its developed transport network. If we look at Belgium's economic activities in previous years, coal, textiles, steel and heavy industry branches held an important place in the economy. Looking at the present day, coal in particular is no longer as popular in the country's economy as it once was. The most important reason why foreign capital chooses Belgium is that the country is located at the centre of important markets due to its geographic position. In addition, developed infrastructure, credit and transport facilities make it attractive to foreign capital.

Economic Relations Between Turkey and Belgium

Among the products Belgium exports are automobiles, railway wagons, racing cars, pharmaceuticals, mineral oils and diamonds. Among the products Belgium imports are serums, vaccines and crude oil. Its main trading partners include the United States, the Netherlands, Germany, France and the United Kingdom. According to the data, in 2017, Turkey's exports to Belgium were USD 3.157 billion while imports from Belgium were USD 3.729 billion. The trade volume between the two countries amounted to approximately USD 6.886 billion. Among the products we export to Belgium are motor vehicles and equipment, textile products, machinery, zinc ores and concentrates and plastics. Among the products we import from Belgium are chemicals and related industrial products, plastics, base metals and automobile parts. As of 2017, there are 614 Belgian-capital companies in our country, while Turkish-capital firms in Belgium have made investments worth USD 320 million.

Turkey - Belgium Foreign Trade Values

(Thousand US Dollars)    

Economic Policies

While Belgium carries out tax reforms, it faces certain difficulties in dealing with increasing costs resulting from an ageing population and infrastructure renewal. Thus, the results obtained within the framework of tax reforms conducted in previous periods have also been insufficient. As life expectancy increases and births decline, the proportion of the elderly population increases, and as the ratio of pensioners to the working population increases, this is expected to place a significant burden on public expenditure. To solve this problem, Belgium has an "Ageing Fund". The increase in necessary public expenditure to finance pension payments and health expenditure for the ageing population is projected to increase by 3.1% of GNP as of 2030, and in line with this, with the ageing of the population, unemployment costs are expected to decline to around 1.1% of this rate.

Let's Talk a Bit About Belgian Chocolate…

Belgian chocolates have gained fame worldwide. These handmade, delicious chocolates are also an important source of income for Belgium. Chocolates sold in sparkling shops on almost every street in the country provide a culinary feast while also offering a visual feast. The chocolate sector in this country, which has been renowned for its chocolates since the 19th century, is legally maintained at certain standards and kept under control. One of these is that chocolates must contain at least 35% pure cocoa. The country's annual total turnover from chocolates is around EUR 5 billion. Belgian chocolate is growing rapidly, particularly on the Asian continent. Since chocolate consumption is very low especially in China and Japan, major chocolate manufacturers are focusing more on these markets. Prepared by: Çağla Köksal

Sources www.ktso.org.tr https://gezimanya.com https://ticaret.gov.tr http://www.mfa.gov.tr https://www.trthaber.com/