Belgium: 2025 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. European Dept.

Volume/Issue: Volume 2025 Issue 069

Publication date: March 2025

ISBN: 9798229005180

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Finance , Labor , Economics- Macroeconomics , Public Finance , Inflation , Energy transition , Financial sector stability , Macroprudential policy , Fiscal consolidation , Government debt management , Fiscal stance , Labor markets , Wages

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Summary

The economy has been resilient to a series of shocks, but growth is slowing, and disinflation is facing headwinds. The labor market has been strong but shows early signs of cooling. Labor-cost competitiveness has declined with wage growth outpacing sluggish productivity. Successive shocks have increased structural fiscal deficits and public debt. Protracted coalition negotiations after elections in June 2024 stalled policymaking; a new federal government was formed in February 2025.