BRUSSELS, 10th October, 2026 (WAM) — Credit rating agency Moody’s has affirmed Belgium’s A1 rating, avoiding a further downgrade as the federal government prepares for negotiations on its 2027 budget, aiming to achieve savings of more than €10 billion.
Moody’s expects Belgium’s economy to grow by 0.7 percent in 2026, rising to 1.0 and 1.1 percent in 2027 and 2028, respectively. Inflation is expected to reach 3.5 percent this year, driven by the impact of the Middle East conflict, higher energy prices and weak external demand.
The agency forecasts that the deficit will be around 5.3 percent of GDP this year. It will remain high in the coming years, while Belgium’s debt will also continue to grow.
The rating agency also warned about the cost of interest on the debt. At the end of September, the average interest rate Belgium had to pay on 10-year bonds was 4.35 percent, 85 basis points higher than at the start of the year.
Prime Minister Bart De Wever’s government aims to save at least €10 billion by 2029 to comply with European Union spending rules, amid disagreements within the ruling coalition over changes to value-added tax (VAT) and reductions in healthcare spending growth.
Meanwhile, trade unions have staged protests in Brussels against existing and planned austerity measures as government budget negotiations continue.
Source: Emirates News Agency