In the first quarter of 2025, Belgium was distinguished by a very high public debt ratio, reaching 106.8 % of its gross domestic product (GDP), according to Eurostat figures. This result makes our country the fourth more indebted in the European Union, behind Greece, Italy and France.
In comparison with the average of the euro zone, which is 88 % of GDP, Belgium is much above, marking a major economic issue for its public finances. This situation highlights the persistent challenges that the country must face in terms of debt management and budgetary stability.
A slightly increased public debt
Belgium did not escape an evolution of its public debt/GDP ratio in the first quarter of 2025. In one year, this ratio increased by 0.2 percentage points, a relatively modest figure, but which contrasts with the developments of certain other EU countries. Indeed, Belgium is placed in a situation where, although the increase is low, the general trend is often down or stabilization in several European countries. For example, Greece has managed to reduce its 9.3 -point debt ratio, an impressive feat. Conversely, Belgium, with its 106.8 %ratio, remains in a fragile position which requires rigorous management of debt, according to Eurostat.
This relative stability in the increase in Belgian debt contrasts with the situation of countries like Poland, Finland, and Austria, which have experienced notable increases in their debt/GDP ratio. These countries have seen an increase in their respective debts of more than 4 percentage points, which illustrates additional difficulties in their economic management. The low increase in debt in Belgium should therefore not obscure a disturbing general trend for several European countries.
Belgium in the face of structural challenges
One of the main challenges of this high debt lies in its potential impact on the country’s economic growth. Indeed, although the increase of 0.2 points seems relatively low, it is part of a context where several other European economies manage to reduce their debt. This delay in the control of the debt could limit the budgetary room for maneuvering of Belgium, especially in times of economic slowdown or future crises. Countries with a high debt ratio are indeed more vulnerable to external shocks, as their borrowing capacities are limited by the importance of their debt.
The continuous increase in public debt in Belgium could also ask questions about the country’s fiscal policy. If the Belgian government fails to contain debt at sustainable levels, this could generate tensions on public finances, with consequences on long -term tax, social and economic policies. Added to this is the impact on debt financing costs, which can become higher when public debt remains on high levels.