Brussels, 15 May 2025 – In a context of declining foreign direct investment (FDI) in Europe, Belgium attracted 210 investments in 2024, down slightly by 2% compared to the previous year. With that performance, our country held on to its 8th place in the European ranking. The FDI projects created 5,392 jobs, a growth of 10%, though it must be added that this rebound follows a 39% drop in 2023. The USA makes a comeback as the biggest investor in our country. These are the main conclusions from the 2025 edition of the Belgian Attractiveness Survey, an annual study conducted by EY that gauges the attractiveness of Belgium as a location for investment.
Ever since Europe came out of the pandemic, the continent has been searching for a new dynamic in foreign direct investment (FDI). This effort has been slowed down by a number of reasons, which endured in 2024: rising geopolitical tension globally, disappointing economic growth, high inflation, and persistently high energy prices.
These tensions are being felt all over Europe. And this time, the top ranked countries are the ones that illustrate this most notably. The three biggest countries in terms of FDI, France, UK and Germany, all registered a double-digit decline. While maintaining their top three position, these declines mean that these countries collectively attracted less than half of Europe’s FDI for the first time since 2018.
If we look at the global picture of FDI at European level in 2024, the number of FDI projects were down 5% compared to 2023 and the number of jobs created by FDI also fell further at an accelerating pace, down 16% compared to last year (previous year drop was 7%).
Manufacturing and logistics drive FDI in Belgium, business services take a hit
Manufacturing and logistics are the driving forces of FDI in Belgium, with 55 and 53 projects respectively. Business services, which surpassed logistics in the numbers of last year, has now fallen back to third place with 35 projects.
As in previous years, Flanders remains the leader in the number of investments, securing about 137 this year (compared to 44 in Brussels and 29 in Wallonia). However, with that number Flanders saw a slight decline in the number of investments. Brussels is the only region where investments have increased. Wallonia kept its number stable.
US makes comeback as biggest investor in Belgium
The origin of foreign direct investments in Belgium is always on the move. In 2023, France dethroned the US as the main source of FDI in Belgium. That position, however, proved to be short-lived. US investments rebounded to 43, following a steep decline in 2023, potentially influenced by the effects of the US Inflation Reduction Act. Meanwhile, last year’s number one France saw its number of projects in Belgium decline to 28 (from 38 in the previous year). The Netherlands performed relatively stable with 18 projects compared to last year’s 21. In a positive development, Germany, one of Belgium’s most important trade partners within the EU, accounted for 13 projects, up from 9 in the previous year.
Other notable evolutions are the continued decline of UK investments in Belgium (down another 28% compared to 2023). A surprising newcomer in the ranking of investors in Belgium is India. However, it should be noted that the 300% increase in the number of investment projects does not translate into a major source of job creation.
Marie-Laure Moreau, partner at EY Belgium, says:
"Belgium continues to be a thriving hub for foreign direct investment, thanks to its strategic location and robust infrastructure. The recent survey highlights the resilience and growth potential of our market, even amidst global economic uncertainties."
Overall sentiment on Europe remains, but trade turbulences jeopardize recovery
Like every year, EY also surveyed international decision-makers about their investment intentions for the year ahead. That perception study shows that the majority of executives are still optimistic about Europe’s prospects, but that confidence is waning. Of the surveyed decision-makers, 61% see an increase in Europe’s attractiveness over the next three years. But that number is clearly down from the 75% that was registered last year. Belgium goes against this trend: 70% of the surveyed decision makers see an increase in Belgium’s attractiveness over the next three years, up from 66% last year.
The prospect of tariffs on imports into the US and record levels of economic uncertainty added to businesses’ long-term worries about Europe’s competitiveness, feeding investor hesitancy. The feared impact of the Trump administration’s new policies on Europe’s prospects cannot be overstated. Some 42% of surveyed businesses think they will decrease Europe’s attractiveness, with just 27% optimistic that they will improve Europe’s allure.
The survey was conducted during a period when the Trump administration had signaled that tariffs would be imposed on imports of goods from certain countries. But the research was completed before the official announcement of retaliatory tariffs in early April. These tariffs were higher and imposed on more countries than expected.
If the survey was conducted today – even following the recently announced 90-day postponement – it is likely that the short-term appetite to invest in Europe would be even lower.
Tristan Dhondt, partner at EY Belgium, comments:
“The current global trade unrest will have an impact on the FDI landscape. However, the resurgence of the U.S. as a key investor in our country and Germany’s growing role as a trade partner offer hope. While U.S. tariffs threaten Belgium’s pharmaceutical exports, our country’s (tech)defense companies are poised to benefit from the expanding European defense sector, potentially attracting more FDI.”
Recommendations to boost the attractiveness of Belgium for foreign investors
These are the policy measures suggested by EY Belgium to ensure the attractiveness of Belgium for foreign investors in the long term:
- Empower SMEs and start-ups
- Champion innovation and R&D
- Streamline regulations
- Forge public-private partnerships
- Invest in renewable energy
Steven Claes, CEO-elect EY Belgium:
"Despite the ongoing global challenges, Belgium has maintained its position in Europe’s top 10 for foreign direct investment, reflecting the confidence investors have in our country’s strategic strengths. We are confident that with the right policy measures, Belgium can continue to attract the investment needed to drive long-term growth. As we move forward, fostering innovation and collaboration with all stakeholders will be key to maintaining our competitive edge.”
Contact:
Christophe Ballegeer
Press Officer, EY Belgium
+32 475 98 33 10
christophe.ballegeer@be.ey.com
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The views and opinions expressed in blog posts authored by AmCham Belgium members are those of the individual member companies and do not necessarily reflect the official policy or position of the American Chamber of Commerce in Belgium.
Belgium Consolidates 8th Place in Europe’s Ranking in Foreign Investments and Sees Marked Increase in Related Job Creation