Editing Economy of Belgium (section)

=== In the twentieth century ===
[[Image:Evolution of Belgian GDP.png|left|thumb|Evolution of the Belgian GDP]]

For 50 years through [[World War II]], [[Francophone|French-speaking]] Wallonia was a technically advanced, industrial region, with its industry concentrated along the [[sillon industriel]], while [[Dutch language|Dutch-speaking]] Flanders was predominantly agricultural with some industry, mainly processing agricultural products and textiles. This disparity began to fade during the [[interwar period]]. When Belgium emerged from World War II with its industrial infrastructure relatively undamaged thanks to the [[Alexandre Galopin|Galopin doctrine]], the stage was set for a period of rapid development, particularly in Flanders. The postwar boom years, enhanced by the establishment of the [[European Union]] and [[NATO]] headquarters in Brussels, contributed to the rapid expansion of light industry throughout most of Flanders, particularly along a corridor stretching between Brussels and [[Antwerp]], which is the second largest port in Europe after [[Rotterdam]].<ref name=DoS/>

Foreign investment contributed significantly to Belgian economic growth in the 1960s. In particular, U.S. firms played a leading role in the expansion of light industrial and petrochemical industries in the 1960s and 1970s.<ref name=DoS/>

The older, traditional industries of Wallonia, particularly [[steel industry]], began to lose their competitive edge during this period, but the general growth of world prosperity masked this deterioration until the [[1973 oil crisis|1973]] and [[1979 energy crisis|1979]] [[price of oil|oil price]] shocks and resultant shifts in international demand sent the economy into a period of prolonged [[recession]]. In the 1980s and 1990s, the economic center of the country continued to shift northwards to Flanders with investments by [[multinational corporation|multinationals]] ([[automotive industry]], [[chemical industry]]) and growing local [[industrial agriculture]] (for textiles and food).

The early 1980s saw the country facing a difficult period of [[structural adjustment]] caused by declining demand for its traditional products, deteriorating economic performance, and neglected structural reform. Consequently, the 1980–82 recession shook Belgium to the core—unemployment mounted, [[social welfare]] costs increased, personal debt soared, the [[government deficit]] climbed to 13% of GDP, and the national debt, although mostly held domestically, mushroomed.

Against this grim backdrop, in 1982, Prime Minister [[Wilfried Martens|Martens']] center-right coalition government formulated an economic recovery program to promote [[export-oriented industrialization|export-led growth]] by enhancing the competitiveness of Belgium's export industries through an 8.5% devaluation. Economic growth rose from 2% in 1984 to a peak of 4% in 1989. In May 1990, the government linked the [[Belgian franc]] to the [[Deutsche Mark]], primarily through closely tracking German [[interest rates]]. Consequently, as German interest rates rose after 1990, Belgian rates have increased and contributed to a decline in the economic growth rate. In 1992–93, the Belgian economy suffered the worst recession since World War II, with the real GDP declining 0.96% in 1993.<ref>{{Cite web |title=Belgium GDP - Worldometer |url=https://www.worldometers.info/gdp/belgium-gdp/ |access-date=2024-08-03 |website=www.worldometers.info |language=en}}</ref>

On 1 May 1998, Belgium became a first-tier member of the [[European Monetary Union]].