Belgium: 2020 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Belgium
IMF Staff Country Reports, March 31, 2020
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- Belgium: 2020 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Belgium
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Bibliographic details
- Published: March 31, 2020
- Series: IMF Staff Country Reports
Executive summary and outlook
- 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 subject to risks, including:
- more widespread and damaging effects of the coronavirus,
- escalating trade tensions,
- a sharper euro-area growth slowdown,
- prolonged domestic political gridlock.
- Policies should focus on addressing the coronavirus outbreak in the near term and rebuilding resilience and addressing structural challenges in the medium run.
Near-term policy priorities (COVID-19 response)
- Immediate policy priority: contain the spread and damaging effects of the coronavirus through targeted temporary support measures to affected firms and individuals.
- Ensure that the healthcare system has adequate resources to address the crisis.
Medium-term structural priorities and reforms
- Reversing the declining trend in productivity growth is essential to support higher standards of living and safeguard fiscal sustainability.
- Reform efforts should focus on:
- reducing red tape for start-ups,
- lowering regulatory barriers to competition in key sectors,
- supporting access to venture capital for innovative firms,
- boosting public investment in infrastructure, fiscal space permitting.
Risks and downside scenarios
- More widespread and damaging effects of the coronavirus could materially worsen growth.
- Escalating trade tensions and a sharper euro-area growth slowdown represent significant external risks.
- Prolonged domestic political gridlock could impede implementation of necessary reforms and fiscal adjustment.
Thematic coverage and issues addressed
- Anti-money laundering and combating the financing of terrorism (AML/CFT)
- COVID-19, containment measure, coronavirus outbreak
- Credit, Loans, Financial institutions, Money
- Fiscal policy, Fiscal stance, Public debt, Spending reform
- Health
- Crime
- State reform, opposition party, government, ISCR, firm, Europe, Global, unfolding COVID-19 crisis
Content in this bundle
- 1belea2020001