This paper discusses two key issues of the Belgian economy: (1) making public expenditure more efficient and (2) addressing the Belgian labor market-segmentations and distortions. Belgium faces fiscal challenges that call for a substantial consolidation over the medium term. The sizable...

This paper discusses economic development and policies of Belgium. The new government has taken important steps to support job creation and address the cost of aging-notably through wage moderation, pension reform, and a tax shift. But growth prospects remain mediocre, public debt very high, and...

Belgium was hit hard early by Covid-19, but a timely, strong, and sustained health and economic policy response helped cushion impacts. A coalition government took office in October 2020, giving greater policy clarity and rightly prioritizing the Covid-19 crisis. A highly-effective vaccine...

This 2020 Article IV Consultation with Belgium highlights that economic activity has held up relatively well over the last year, but the outlook is clouded by unusual uncertainty and risks. The coronavirus outbreak is expected to reduce growth this year, and the outlook is highly uncertain and...

This Selected Issues paper analyzes Belgium's fiscal stance using a structural stochastic model. This note uses a theoretical model that explicitly accounts for the trade-offs between the short-term cost of fiscal tightening and the long-term gains associated with higher fiscal buffers. This...