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Belgium’s economy experience increase in cost due to supply shortage, says data

The economy of Belgium is experiencing an increase in the costs because of the lack of supply as well as logistical issues because of Russia’s full-scale military operation in Ukraine, as per the National Bank of Belgium’s data.

According to the sources, there are most industries facing this issue, but not all of them are affected by this equation.

The National Bank of Belgium noted in the recent study that has been conducted by the leading industry groups and federations who have conducted a joint ad hoc survey of Belgian companies as well as self-employed individuals.

Moreover, the results have came indicated that there are very few companies in the nation that had any direct trade with Russia. During a company survey, about 0.7 percent of the sales, as well as 1.6 percent of the supplies, were linked to Russia or Ukraine before the beginning of the invasion.

Some of the organisations have been directly impacted. The companies have been involved in the manufacturing industry, transport, logistics, and agriculture that often deal directly with the companies of Russia, which is making them more sensitive to the international sanctions as well as the shortage of supplies.

Along with this, the data shows that the exposure of the companies in Belgium to Russia, as well as Ukraine, scales with the number of employees the companies employ.

About 30 percent of the nations with over 50 employees made the sales to either country compared to just 6 percent for the companies with some employees. On an average basis, only 5 percent of the organisations in Belgium sold the products to Russia.

Furthermore, the organisations in Belgium are still reasonable dependent on supplies from Russia. Approximately 34 percent of the large companies that have been surveyed, as well as the 12 percent of the small companies, have sources of the material directly from Russia.

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