The Belgian housing market is not performing as well as expected, with a decline in housing investments for three consecutive quarters due to expensive building materials and increased mortgage interest rates. This was highlighted by Chief economist Geert Langenus during the National Bank’s half-year outlook presentation on Friday. Despite this, the issue of affordable housing is not being discussed in the election discourse, according to Wunsch, who expressed regret that policy can have a significant impact on it.
The National Bank has called for an increase in the supply of housing, stating that government measures such as increasing social housing or adjusting regulations can play a crucial role. They also provided feedback on the renovation obligation, suggesting alternatives such as solar panels and heat pumps to achieve climate targets. Additionally, they emphasized the high cost of housing in other regions and called for a debate on the impact of policy decisions on housing prices.
In terms of economic forecasts, the National Bank’s projections for GDP growth, business investments, government investments, household consumption, and inflation were in line with previous estimates. They expect steady economic growth with a slight acceleration in 2026. However, they noted that business investments are moderating and government investments are declining post-elections. Net exports are expected to make a less negative contribution but household consumption is projected to remain stable with a slight decline in savings rate. Wage moderation and limited job creation are also factors taken into account in these forecasts. Inflation is expected to gradually decrease over time.
Overall, the National Bank’s outlook reflects both challenges and opportunities facing the Belgian economy while highlighting the importance of policy decisions in shaping key economic indicators like affordable housing and inflation.
In addition to discussing the challenges faced by the Belgian economy during their half-year outlook presentation, Wunsch also addressed concerns about affordability issues affecting families’ ability to access affordable housing options. He emphasized that there is an urgent need for more housing due to population growth and migration trends.
Furthermore, Geert Langenus pointed out that Belgium’s social infrastructure is under pressure from population growth and aging population which increases demand for healthcare services.
Wunsch highlighted that policies aimed at addressing these challenges must be carefully considered as they could have unintended consequences on other areas such as economic growth or inflation.
Overall, Wunsch emphasized that policymakers must take a holistic approach when considering solutions for these complex issues facing Belgium’s economy today.
