Belgium: 2016 Article IV Consultation--Press Release; Staff Report
IMF Staff Country Reports, March 7, 2016
Source details
- Canonical URL
- Belgium: 2016 Article IV Consultation--Press Release; Staff Report
Other formats
Bibliographic details
- Published: March 7, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513547480.002
Summary and key findings
- 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.
- Growth prospects remain mediocre, public debt very high, and the labor market severely fragmented.
- The central task is to achieve a lasting reduction in public debt while nurturing the recovery and social cohesion.
- The government’s goal of achieving structural fiscal balance by 2018 is laudable but ambitious—with almost two percent of GDP of measures yet to be identified.
- Tapping Belgium’s full labor market potential requires a comprehensive and inclusive jobs strategy.
Fiscal outlook and policy recommendations
- Achieve a lasting reduction in public debt while nurturing the recovery and social cohesion.
- Identify and implement almost two percent of GDP of additional measures needed to reach structural fiscal balance by 2018.
Labor market issues and reforms
- Labor market characterized as severely fragmented.
- Policies taken include wage moderation and a tax shift to support job creation.
- Recommendation: adopt a comprehensive and inclusive jobs strategy to tap full labor market potential.
Notable measures taken
- Wage moderation.
- Pension reform.
- A tax shift.