Belgium: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
International Monetary Fund, Mar 9, 2009 - Business & Economics - 40 pages
The global financial crisis has forced government intervention in major financial institutions in Belgium. This 2008 Article IV Consultation discusses that the boom in energy and food prices in early 2008 caused inflation to spike to well above the euro area average. Executive Directors have commended the authorities for their prompt and decisive intervention as the Belgian banking sector began to face severe pressure in September 2008. Directors have also encouraged the authorities to allow fiscal stabilizers to operate fully, and welcomed the moderate discretionary stimulus.
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I Staff Appraisal and Executive Summary
II Current Crisis and Outlook
III Responding to the Crisis
IV Beyond the CrisisRestoring Growth Enhancing Resilience and Returning Fiscal Sustainability
Article IV Consultation bancassurance Bank of Belgium banking sector Belgian authorities Belgian banks Belgium beneﬁt BFIC BNP Paribas boost budget capital injections communities/regions competitiveness consolidation strategy consumer consumption contribution current account deﬁcit deteriorating Dexia domestic downturn economic Effective Exchange Rate energy and commodity equity Ethias euro area average Euro zone Eurostat Executive Board Expenditure 49.5 Exports federal government financial crisis ﬁnancial sector ﬁnancing ﬁscal Fiscal policy fiscal sustainability ﬂscal Fortis Bank framework further GDP deflator global govemment High Finance Council household imbalances increase inﬂation inﬂationary institutions INTERNATIONAL MONETARY FUND items in percent KBC Bank labor liquidity loans macroeconomic NAIRU Output gap 0.5 partner countries percent change percent of GDP percentage points Plan de Relance Primary balance 4.5 ratio Real Effective Exchange real GDP growth real interest rate recommended reﬂecting regions Revenue risks spike staﬂ stimulus package U.S. dollar unemployment wage indexation