The economic consequences of the flow of refugees into Belgium

The article attempts to put into context and estimate the economic impact of the recent arrival of asylum-seekers in Belgium. Despite the wide media coverage, this wave of refugees only accounts for a very small proportion of the Belgian population and is still much the same as the numbers recorded in the 2000s. Its economic impact should not be overestimated either. The authors' estimates point to a relatively limited but still positive effect on economic activity, of around 0.17 % by the year 2020, and, even though the resultant costs weigh heavily on public finances in the short term, a return to a balanced budget is expected in the medium term. It should be noted that better integration into the labour market could bring more positive results. Yet, the employment rate among immigrants is low, especially in Belgium, and the gap with respect to Belgians remains significant. Only part of this phenomenon can be explained by individual features of the foreign population. The problem of recognition of qualifications and skills, lack of human and cultural capital in the host country as well as some degree of discrimination also constitute barriers to immigrant employment. In spite of various policies that have already been put in place, a lot more effort still has to be made to improve the integration of foreigners on the labour market and their socio-economic status too. The country’s economy will then be able to take full advantage of the contribution from their labour force.