Belgium: Staff Report for the 2003 Article IV Consultation

IMF Staff Country Reports, February 27, 2004

Source details

Long-term issues continue to dominate the economic policy agenda.
The economy is expected to grow at a moderate pace.
The challenge from aging is becoming more pressing, calling for sustained fiscal consolidation.
The elaboration of a medium-term fiscal framework based on expenditure growth ceilings will help underpin the achievement of budget objectives.
The focus on job creation has triggered helpful initiatives but further, comprehensive labor market reform is needed to raise employment rates.
An acceleration of product market reform will provide an impetus to growth.

Growth outlook: "The economy is expected to grow at a moderate pace."
Demographics and fiscal pressure: "The challenge from aging is becoming more pressing, calling for sustained fiscal consolidation."
Fiscal framework recommendation: "The elaboration of a medium-term fiscal framework based on expenditure growth ceilings will help underpin the achievement of budget objectives."
Labor market: "The focus on job creation has triggered helpful initiatives but further, comprehensive labor market reform is needed to raise employment rates."
Product markets: "An acceleration of product market reform will provide an impetus to growth."

Pursue sustained fiscal consolidation to address pressures from aging.
Develop and implement a medium-term fiscal framework anchored by expenditure growth ceilings.
Implement comprehensive labor market reforms to raise employment rates beyond current job-creation initiatives.
Accelerate product market reforms to support higher growth.

Subject: Expenditure, Fiscal policy, Fiscal stance, Health care spending, Labor, Labor markets, Public debt
Keywords: authority, Central and Eastern Europe, competition authority, consumer price inflation, CR, employment growth, Fiscal stance, growth assumption, Health care spending, interest rate, ISCR, job creation, Labor markets, public spending, rate, real GDP