Economy
Belgium is a highly developed, industrial countrycountry that is based on free enterprise, where the government has little or no control on the businesses. Though private enterprise is encouraged, yet the government owns and operates part of the transportation and communication system, apart from providing basic social services and medical insurance coverage to all citizens. Its economy is based primarily on manufacturing, commerce, and services and is heavily dependent on foreign trade. Most of the trade is with fellow members of the European Union. Tourism also contributes to the economy. The executive bodies of the European Union and the headquarters of many other international organizations, including NATO, are in Belgium.
Belgium, the Netherlands, and Luxembourg are closely linked by Benelux, an economic union formed for the free movement of workers, capital, goods, and services between the three countries.
Belgium's basic currency unit is the euro, which is divided into 100 cents.
which include community, social, and personal services, which cover such areas as education, health care, and government, employ about three-quarters of Belgium's workforce. Apart from these, finance, restaurants, and wholesale and retail trade are important service industries. Most of Belgium’s service industries are based in its cities, for instance, Brussels is a key center for commerce, finance, and transportation.
Belgium's manufacturing industries, which suffered relatively little damage during World War II, were greatly modernized and expanded after the mid-20th century. Industrial development was aided by many investment incentives offered to private industry by the government. Foreign investment in Belgian manufacturing has been large. Today, manufacturing employs around one-fourth of the Belgian workforce.
Most of the newer facilities are in the north, close to ocean shipping. This region is now the main manufacturing area of Belgium, surpassing in output the long-established Sambre-Meuse industrial area in the south. and such ports as Flanders.
For many years the iron and steel industry dominated the industrial sector of Belgium's economy. Although still significant, it has experienced a decline since the late 20th century. Especially important today are the electronics, engineering, and fabricating industries. Products include transportation equipment, machine tools, and telecommunications equipment.
The processing of foods and beverages, including Belgian chocolates and the making of chemicals, drugs, explosives, pesticides, plastics, refined petroleum products, textiles, clothing, glassware, and clay products are also well-developed industries. Belgian textiles have long had a reputation for quality, especially woolens, cottons, linen, and lace. In addition, Antwerp is one of the largest diamond-cutting centers in the world.
Although its contribution to the gross national product is relatively small, agriculture is, nevertheless, important, providing nearly all of the country's food and a surplus for export. About 45 per cent of the country's total area is farmland, the best of which is north of the Sambre-Meuse Valley. The average farm is about about 58 acres (23 hectares) in size. Most farms are family operated, which they have rented.
Most of the farmland is used for pasture crops to feed beef and dairy cattle, hogs, and other livestock. Major food crops include wheat, oats, barley, sugar beets, potatoes, and a variety of vegetables and fruit. Greenhouses provide many of the vegetables. Flowers, such as azaleas, bulbs, and ornamental plants, mainly for export, are specialties in Flanders.
The relatively small fishing fleet operates mainly out of the North Sea ports of Ostend and Zeebrugge. The catch is mainly deep-water fish, such as cod and herring.
Belgium's only significant mineral resource is coal, mined in the Kempen and the Sambre-Meuse Valley. Belgium was once a major European coal producer. However, production has been falling for many years, mainly because mining the deep underground seams is difficult and costly. The other products mined in Belgium are dolomite, granite, limestone, marble, and sandstone.
Forests cover nearly 20 per cent of the land, and lumbering is of some importance. Production comes mainly from the Ardennes and consists of about 60 per cent hardwoods. Virtually all the softwood trees, mainly pine and spruce, have been planted for lumber harvests.
Belgium depends heavily on international trade as the country has few natural resources and the internal market for finished goods is also quite small. Belgium is a member of several international organizations that promote trade and economic cooperation, including the Belgium-Netherlands-Luxembourg Economic Union, or Benelux, and the European Union, an association of European countries that also works for political cooperation among its members. Belgium trades with many nations, though its major trading partners are other members of the European Union, especially Germany, the Netherlands and France.
Machines and other engineering goods are the largest imports and exports of Belgium. Belgium also imports chemicals, diamonds, grains and petroleum. The major exports of Belgium consist of chemicals, diamonds, glass products, processed foods, steel, and textiles.
is highly developed in Belgium. The National Association of Belgian Railroads, which are nationally owned and operated, form one of the densest railway networks in the world, and cover almost 2,500 miles (4,000 kilometers). Most main lines are electrified. The highway system is one of Europe's finest. Modern expressways link the major cities and connect with similar routes in adjoining countries.
Inland waterways and canals, especially the Ghent-Terneuzen and Albert canals, are used extensively. Normally they carry more tonnage than the railways, and cover almost 975 miles (1,570 kilometers). The chief port is Antwerp, one of the largest and busiest ports on the continent. Other important inland ports are Ghent and Zeebrugge. The Zaventem International Airport, the main international airport of Belgium is at Brussels. There are also international airports at Antwerp, Ostend, and Charleroi.
There are about 25 daily newspapers published in Belgium, most in Dutch or French, except one that is published in German. Radio and television are owned and operated by public corporations, which earn their incomes from the annual fees paid by people for having radios and TV sets at home. The major programs are broadcast in Dutch and French.
