The projected buoyancy in foreign markets should continue to support exports, but the recent appreciation of the Belgian franc
in effective terms may lead to some losses in market shares.
With downward pressure on the Belgian franc
disappearing, the National Bank repeatedly reduced its official interest rates in the first five months of 1994.
The effective exchange rate of the Belgian franc
has returned to the levels prevailing in mid-1992, thus erasing some of the previous losses in international competitiveness.
As a result of the recent depreciation of the Belgian franc
in effective terms, the contribution to growth of net exports is likely to become neutral in 1991 and moderately positive in 1992; the BLEU current-account surplus could thus widen further.
Short-term interest rates, which have fallen by over a point since the Belgian franc
was officially linked to the strongest EMS currency in the spring of 1990, may soon rise again, in line with German rates.
Sonaca, Sabc , the Barco NV Display Systems division of electronics group Barco and Asco Aero Industries, each hold 25% of Flabel, which has a modest 12 million Belgian Franc
(USD349,100) start-up capital.