Belgium's budget cuts likely to slow growth, ING says

ING Belgium warns that measures to reduce the government budget deficit will dampen the country's economic growth in the coming years. Chief economist Peter Vanden Houte points to rising pension and social‑spending pressures from an ageing population, together with higher defence and interest‑cost burdens, as factors that will put the public finances under strain. The bank expects Belgium’s growth to fall below the euro‑area average, while investors remain skeptical about the government's ability to stabilise finances, though no credit‑rating downgrade is forecast for this year.

Across the eurozone, growth is projected to stay weak, peaking at about 0.5 % by 2026, with consumer confidence hurt by higher energy prices and a slowing labour market. By contrast, ING sees the United States posting around 2 % growth this year, driven by productivity gains linked to artificial‑intelligence adoption and robust technology investment. Chief strategist Vincent Juvyns remains cautiously optimistic about markets, highlighting opportunities in technology, health‑care, financial services, emerging‑market debt, high‑yield bonds and renewable‑energy infrastructure. Inflation is expected to ease slightly in the second half of the year, but may stay above central‑bank targets, leaving the possibility of another ECB rate increase later in 2026.