Boston, MA -- (SBWIRE) -- 03/06/2013 -- Core Views

Despite a promising recovery from the global financial crisis, the Belgian economy is now struggling against mounting headwinds from the eurozone.

A particular concern is the national debt which, at close to 100% of GDP, leaves Belgium vulnerable to a deterioration in risk sentiment and a slowdown in economic growth.

Although the formation of a new government has ended 18 months of political paralysis, the six-party coalition could yet struggle to overcome ideological differences in order to tackle much-needed fiscal and economic reform.

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Major Forecast Changes

There are no major forecast changes this quarter.

Key Risks To Outlook

Downside Risks To Medium-Term Growth: There are significant downside risks to our economic growth forecasts, particularly stemming from the impact of fiscal consolidation and the eurozone sovereign debt crisis.

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