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...

This Article IV Consultation highlights that Belgium has experienced nine consecutive years of economic growth. Per capita GDP has surpassed pre-crisis levels, and unemployment is at its lowest level in four decades. The financial sector has also undergone structural changes and increased its...

This 2017 Article IV Consultation highlights Belgium's recovery, which is expected to strengthen modestly in 2017, with real GDP projected at 1.6 percent. The medium-term outlook remains constrained by structurally weak growth in advanced economies. Downside risks are significant, including...

This Selected Issues paper explores key features of Belgium's corporate income tax (CIT) regime as background for potential growth-enhancing reform options that also safeguard revenues and limit distortions. Comprehensive reform of business and investment income taxation in Belgium is both...

This Selected Issues paper analyzes productivity growth in Belgium. It highlights that Belgium's subdued productivity growth can be explained by a combination of sectoral employment shifts, barriers to competition, the declining quality of infrastructure, and an aging workforce. The shift of...

This Technical Note discusses the results of the stress testing of Belgium's banking and insurance sectors. Belgium's financial sector remains resilient in the face of the rising cyclical vulnerabilities, but there is a need for closely monitoring risks. Stress tests on banks and insurance...

This Technical Note analyzes the key aspects of the regulatory and supervisory regime of banks, insurance companies and financial conglomerates (FCs) in Belgium. The regulatory framework for Belgian financial institutions has been strengthened substantially since the 2013 Financial Sector...

This paper assesses the stability of Belgium's financial system. The financial sector remains resilient in the face of the rising cyclical vulnerabilities, but there is a need for closely monitoring risks. Stress tests on banks and insurance companies confirm that they can absorb credit,...