Belgian recovery offset by dollar and rate rises

The Belgian economy has seen economic recovery in 1994 with growth of between 1.5% and 2% forecast for the year. This recovery has been affected by a rise in long term interest rates following rate rises in Germany, and the impact of a weaker dollar. Consumers are cautious and the savings ratio in Belgium is over 20%, which has affected Belgian retailers which have yet to benefit from recovery. Some analysts argue that the dollar has reached a low, and will rise, while long term interest rates may also stay stable.