By Simon Bensimon

Belgium's slowing economy is expected to edge ahead in 1992. Despite the economic slowdown which has gripped Europe since 1990, Belgian real GNP in 1992 should rise by

U.S. exports 1991--$10.8 billion U.S. imports 1991--$4.1 billion

2 percent--up from a 1.4 percent gain last year. The recovery will be spurred mostly by a small increase in exports to Belgium's two main trading partners--the Netherlands and Germany; a 5 percent growth in the construction sector; and a modest rise in private consumption. Rising unemployment and a high level of public debt remain causes for concern. Overall, however, Belgium continues to be a leader among the group of best-performing economies among the 12 member nations of the European Community (EC). Other positive developments in 1992 include an anticipated small rise in corporate investment (3 percent) and expected declines in inflation and hourly wage costs in industry.

These developments will help keep Belgium as the United States' fifth largest market in western Europe and tenth largest worldwide. The U.S. share of the Belgian market in manufactured goods currently is 7.7 percent. Only in the Netherlands, Ireland, and the United Kingdom do American goods enjoy a higher market share.

Best export prospects include tobacco products, coal, and a wide variety of products and equipment for the following industries: avionics and ground support, automatic data processing, plastics and chemicals, civil engineering, textile yarns and fabrics, apparel, insecticides, pulp and waste paper, agricultural machinery, medical and dental, pharmaceuticals, motor vehicles, auto parts and auto maintenance, pollution control, and a range of consumer goods for niche markets.

Exporters wishing to tackle the Belgian market are encouraged to try a variety of promotional aids available through the Department of Commerce--including single company promotions, gold key services, and matchmaker trade delegations.

With 85 percent of its GNP generated by foreign trade, Luxembourg also offers a small but receptive market for U.S. goods and services. Exports in 1991 were up 62 percent to $217 million over the previous year. Despite an ongoing slump in the steel industry--a key component of Luxembourg's industrial base--the economy, fueled by an expansion in the services industries, is expected to remain vibrant for the near future.

Best sales prospects include customer-specific quality consumer goods such as musical instruments; motor vehicles and auto parts; printing and bookbinding machinery; and lighting fixtures. Luxembourg's 1992 budget also affords U.S. firms major opportunities in such areas as road infrastructure, telecommunications, environmental protection, and education.

For more information, call the Commerce Department's Belgium- Luxembourg Desk on (202) 482-5401.

Source: International Trade Administration, Business America Magazine