Belgium: 2025 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, March 20, 2025
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- Canonical URL
- Belgium: 2025 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: March 20, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229005180.002
Key findings on recent performance and outlook
- The Belgian economy was resilient to a series of shocks, but growth has been slowing.
- Core inflation remains persistent.
- Labor productivity growth remained sluggish.
- Labor-cost competitiveness has declined.
- Successive shocks have increased structural fiscal deficits and public debt.
- Risks from deepening geoeconomic fragmentation and intensification of regional conflicts affecting energy, trade and financial spillovers could worsen the outlook.
Fiscal policy assessment and needs
- Sustained fiscal consolidation is needed to:
- support disinflation despite upside risks;
- rebuild buffers;
- lower vulnerabilities to changes in market sentiments;
- address pressures from aging and the green transition.
Structural reforms and growth agenda
- Reforms are needed to increase growth potential through:
- higher labor force participation;
- higher productivity; and
- more efficient resource allocation.
- Priority reform areas identified:
- increase the income gap between work and nonwork through tax and social benefits reforms;
- reform the wage-setting mechanism;
- upgrade human capital formation.
- Sustaining the green transition requires strong commitment by and enhanced coordination among the federal and federated entities.
Subject areas and keywords
- Subject: Income, Labor, Labor markets, National accounts, Public debt, Wages
- Keywords: CD center, core inflation, executive board assessment, Global, Income, Labor markets, single market, tax administration diagnostic assessment tool, Wages
Content in this bundle
- 1. Macroeconomic Developments