wing 2.2 percent growth in 1988, performance which exceeded analysts' expectations by a full percentage point. Demand components of GDP were all on an upward trend at this time and private consumption was moving steadily upward, as well. The nation had a current account surplus of 1.8 percent of GDP coupled with a low inflation rate and strong competitiveness in the international market. However, the government had not yet succeeded in substantially reducing its budget deficit, which remained at 8.3 percent of GDP for 1988 with a total cumulative debt of 130 percent of GDP. Between 1988 and 1989, the nation saw a 10 percent reduction in the number of unemployed, and a low inflation rate of only 1.2 percent. Investment prospects were good for both domestic and international investors as capacity utilization was estimated at 85 percent (meaning that the nation would need additional investment in order to increase its capacity) ("Belgium: A Period," 1989, p. 20).
By 1990, the cumulative debt had fallen to 125 percent of GDP, but the publ
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