Belgium: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, March 27, 2008
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- Belgium: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: March 27, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451803280.002
Main findings: macroeconomic performance and policy environment
- Economic performance has remained good.
- Difficulties in building consensus for institutional reform have caused an "ill-affordable hiatus in economic policymaking."
- Robust economic activity absorbed a growing labor force and allowed the unemployment rate to decline continuously.
- Low-income groups are being disproportionately affected by the food and energy price increases, triggering a necessary increase in targeted income support.
- The authorities agreed that various indicators suggest that the current level of the real effective exchange rate is broadly appropriate.
Fiscal and structural issues
- Institutional reform stalemate has interrupted economic policymaking, impeding progress on fiscal consolidation and structural adjustment.
- Mentioned policy responses include an increase in targeted income support to protect low-income groups from food and energy price increases.
Labor market and social impact
- Labor force growth was absorbed by robust activity.
- Unemployment rate declined continuously.
- Low-income groups face disproportionate effects from food and energy price increases, prompting targeted income support.
Exchange rate assessment
- Authorities and staff concur that various indicators suggest the current level of the real effective exchange rate is broadly appropriate.