Non-compete and related clauses are fairly common in Belgium. According to employers, between 22% and 33% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey. Results from the employee survey confirm a high prevalence: 14% of workers report being bound by a non compete clause, with an additional 19% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey.

GDP growth will decrease to 0.7% in 2026 before picking up to 1.1% in 2027. Energy support measures and partial wage indexation will only partly mitigate the negative impact of inflation and fiscal consolidation measures on purchasing power, hurting consumption growth. Headline inflation will increase to 3.5% in 2026 before slowing to 2.6% in 2027. The energy shock and geopolitical tensions will also drag on exports. Potential gas or oil shortages pose a risk for Belgium’s highly fossil-fuel dependent industry. A consolidation strategy that fails to put public debt on a downward path would raise already high interest costs.

Fiscal consolidation is underway, but additional efforts remain necessary to stabilise the high level of public debt and strengthen budgetary coordination across federal and regional governments. Reducing high energy intensity and fossil fuel dependence through a comprehensive energy transition strategy would strengthen energy security and resilience to energy shocks. Lowering administrative burdens and streamlining permitting procedures would foster investment.

GDP per capita continues to lag that of the upper half of OECD countries, owing to the substantial gap in employment rates. While labour productivity remains among the highest in the OECD, it has slowed significantly over the past decade. However, this negative trend has reversed since 2021, sustained by stronger investment.

Higher employment rates would contribute to improving living standards, wellbeing, and social inclusion, while helping to address challenges posed by demographic changes. This requires reducing the tax burden on labour, particularly for the low skilled, and strengthening adult education. Reducing skills shortages as well as regulatory and administrative overheads can foster business dynamism and help Belgium’s firms achieve their full potential.