France was the leading source of foreign investment into Belgium last year, according to a study by consulting firm EY.
Previous years saw American firms as the most active investors, however, the US Inflation Reduction Act led to fewer investments flowing to Europe. The study found the number of American investment projects in Europe fell by 15% in 2023.
EY believes this to be a "significant indicator". Measures are required, according to the consultancy, to boost investment in Belgium and Europe. "Why not be a little protectionist like the Americans," suggests Marie-Laure Moreau, partner at EY Belgium.
Foreign investors announced 215 projects in Belgium last year, an 8% drop from 2022 and the lowest number since 2017. These included 155 new projects and 60 expansions of existing ones. Notably, the investments were associated with fewer new jobs: 4,293 compared to 6,569 in 2022.
Therefore, France has become the most crucial source country for foreign investments in Belgium, with 38 projects announced last year. The US dropped to second place with 29 projects, followed by the Netherlands with 21. British investment in Belgium continues to decrease, from 37 in 2021, to 27 in 2022 and 18 in 2023.
The study comes with several recommendations to boost Belgium’s attractiveness to foreign investors. Among these suggestions is reducing labour taxes to levels seen in neighbouring countries, reforming the labour market, and promoting reindustrialisation.
