Belgium recorded its lowest number of new foreign investment projects since 2014, with inflows falling 11 per cent in 2025, according to consultancy firm EY. Despite the decline to

187 projects, the country maintained eighth place in EY’s annual European attractiveness ranking, while job creation linked to those investments unexpectedly increased.

The downturn reflects a broader European trend. Across the continent, foreign direct investment projects dropped 7 per cent to 5,026 — the weakest performance in a decade. Analysts point to persistent geopolitical instability, trade tensions driven by rising import tariffs, volatile energy prices and sluggish economic growth as key factors dampening investor confidence.

Europe’s largest investment destinations, including France, the United Kingdom and Germany, experienced some of the steepest declines. Belgium also suffered a sharper-than-average fall in incoming projects.

While Europe overall saw job creation from foreign investments plunge by 25 per cent last year, Belgium moved in the opposite direction. Employment linked to new projects rose 13 per cent to 6,094 jobs, marking a second consecutive annual increase after a steep drop in 2023.

Tristan Dhondt, partner at EY Belgium, said uncertainty has become a permanent feature of global investment decisions. “Whether driven by geopolitics, energy prices or trade tensions, uncertainty is now structural,” he said.

Steven Claes, chief executive of EY Belgium, also highlighted the impact of US trade policy under the administration of Donald Trump. According to Claes, American companies — Belgium’s largest foreign investors — have increasingly been encouraged to prioritise domestic investment in the US, a shift that is affecting investment flows across Europe, particularly in the pharmaceutical sector.