During the fourth quarter of 2021, Belgium, Netherlands and Luxembourg consolidated the recovery of their economic activity; moreover, they recorded an increase in their y/y GDP growth rates relative to 3Q21, except for Benelux that remained constant. As far as inflation is concerned, Belgium recorded the highest rate (5,15%), whereas the Luxembourg registered the lowest one (4,09%). Regarding the labour market, Belgium, Luxembourg and the Netherlands reached lower unemployment levels than in the third quarter.

Macroeconomic outlook report: Benelux 4Q21

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Macroeconomic overview

  • Belgium: In the fourth quarter, the Belgian economy continued its recovery, with a 0.70 p.p. increase in their GDP relative to the previous quarter. Thus, the y/y variation of its GDP registered this time a positive rate, standing at 5.60%. Regarding the inflation rate, it increased to 5.15% after a rise of 2.53 p.p. with respect to the third quarter. In turn, the unemployment rate declined 0.43 p.p., down to a 5.87% rate.
  • Netherlands: The economy of the Netherlands increased compared to the third quarter of 2021, recording for the third time after the pandemic a positive year-on-year GDP growth rate of 6.20%. In turn, it recorded an inflation rate of 4.77% after an increase of 2.60 p.p. Regarding the unemployment rate, it decreased 0.33 p.p., down to 3.80%, the lowest rate among the three countries.
  • Luxembourg: In the fourth quarter of 2021, Luxembourg's economy remained constant in its y/y GDP variation rate with respect to the previous quarter, recording a rate of 4.80%. Regarding the unemployment rate, it continued falling, down to a 5.27% rate, after a decline of 0.28 p.p. relative to the third quarter. In turn, inflation experienced a 1.61 p.p. increase, reaching a 4.09% rate, placing Luxembourg as the country with the lowest inflation in the Benelux.

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