The European Commission said the effect of the March terror attacks on the Belgian economy is expected to be “transitory,” with the primary impact on the hospitality industry.
“The March attacks are expected to have a transitory impact on the Belgian economy,” the Brussels-based commission said in its latest economic forecasts published on Tuesday.
The bombings on March 22 at the Brussels airport and a downtown subway station killed 32 people. The metro station reopened in late April, while the airport is operating at reduced capacity amid stepped-up security.
“The main channel through which the events are likely to affect economic activity is the hospitality industry given a slump in tourist arrivals,” the commission said. “Indirectly, an apparent weakening of consumer sentiment could suggest a further softening of the already slow-moving business cycle.
Belgium’s consumer sentiment index declined for a fourth straight month in April, the National Bank of Belgium said on April 20.