## Belgium: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Belgium

_IMF Staff Country Reports, March 2, 2023_

## Source details

**Canonical URL:** [Belgium: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Belgium](https://www.imf.org/en/publications/cr/issues/2023/03/01/belgium-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-530357)

## Other formats

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## Bibliographic details
- Published: March 2, 2023
- Series: IMF Staff Country Reports

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### Overview
- Publication date: March 2, 2023
- Summary finding: Belgium’s post-pandemic recovery has slowed with spillovers from Russia’s war in Ukraine, high inflation, tighter financial conditions, and elevated uncertainty.
- Policy context: Federal and regional authorities provided timely and substantial support to households and firms in response to the spike of energy prices.

### Fiscal policy and energy support
- Energy support and automatic indexation of wages and benefits helped cushion impacts but came at significant fiscal cost.
- Effect on fiscal balances:
  - Fiscal deficit increased in 2022 and 2023 (no numerical values provided in the source).
- Policy implication:
  - Lower energy prices would reduce fiscal pressures.

### Macroeconomic developments
- Inflation: High inflation noted as a drag on recovery.
- Financial conditions: Tighter financial conditions contributing to slower recovery and elevated uncertainty.
- Risk environment:
  - Risks are tilted to the downside, including escalation of the war in Ukraine and a sharper-than-expected tightening of financial conditions.
  - Scenario: Progress on structural reforms before elections in 2024 could boost confidence.

### Labor market
- Labor market remained tight.
- Key indicators:
  - Record-high job creation.
  - Low unemployment.

### External sector
- Current account:
  - The external current account swung to a large deficit in 2022.
  - Primary drivers: Higher energy imports and lower vaccine exports.

### Financial sector
- Characteristic: Resilient financial sector.
- Challenge: Facing pressures from the weaker macro-financial environment.

### Structural reforms
- Some important structural reforms took place in 2022.
- Policy recommendation implied: Further progress on structural reforms, particularly ahead of elections in 2024, could help restore confidence.

### Subjects and keywords (as listed)
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Energy prices, Inflation, International organization, Labor, Monetary policy, Prices, Wage indexation, Wages
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), consumer confidence, Energy prices, Global, indexation mechanism, Inflation, money market rate, Policy discussion, policy reform, product market reform, State secretaries Bertrand, Wage indexation, Wages

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- **1belea2023001**
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_Source: https://www.imf.org/en/publications/cr/issues/2023/03/01/belgium-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-530357_