*In its latest forecast for the world economy, the International Monetary Fund (IMF) predicts that Belgium will have the largest public deficit of the industrialised countries in 2027. In the EU, only Romania will go deeper into the red.*
*On Monday, the IMF lowered its growth forecasts for many countries that are feeling the pinch of the war in Ukraine. Belgium also shares in the blame. The IMF forecasts a growth of 2.1 percent in 2022, while in October it was still assuming 3.1 percent. For 2023, a growth of 1.4 percent is now expected.*
*The adjustment affects the budget, which was already derailed by the pandemic. Last year, the IMF assumed that Belgium would have the largest public deficit in the eurozone in 2026.*
*Now it is predicted that in 2027 the deficit will also exceed that of the US. Belgium will lead the industrialised countries, with an expected deficit of 5.4 per cent of gross domestic product (GDP). In the EU, Romania is at one with 5.8 per cent. The French deficit is put at 3.3 per cent of GDP, the Dutch at 0.8 per cent.*
*State Secretary for Budget Eva De Bleeker (Open VLD) responds that the government has to work on the agreed reforms despite the economic consequences of the war in Ukraine. Especially a plan to keep the pensions affordable is still pending. According to the IMF, Belgium will also be the leader in terms of public spending in 2027.*
Awesome!
Gives us 4,5 years to try to pass them. I’m sure that we can do it with some political good will!
Ah the everlasting worldwide infinite-growth Ponzi scheme.
So far its not that big of a problem considering negative/low interest rates and inflation. But they need to balance the budget within 5 years or it will actually be a problem ..
Cut all spending that has no decent ROI, in war times with high energy prices this should be justifiable.
Edit: in Belgium the majority of voters is dependant on govt (public servants, culture, welfare, pension,….) – countries with this imbalance typically go into a downward spiral as no one will vote against budget cuts. So brace yourselves people….The amount of downvotes will also confirm this.
Looks at Japan, starts to care less.
I for one welcome our new IMF overlords
Ok. Does not matter.
But our companys are very strong, they received all the money!!
Sigh… And who’s going to pay for it again. That’s right, the upper middle class.
We can pass it with all thheir whoes..l.
You’d hope that living through a pandemic and a war that snuck up on everyone would instill some humility on those making budgetary predictions 5 years into the future.
12 comments
*In its latest forecast for the world economy, the International Monetary Fund (IMF) predicts that Belgium will have the largest public deficit of the industrialised countries in 2027. In the EU, only Romania will go deeper into the red.*
*On Monday, the IMF lowered its growth forecasts for many countries that are feeling the pinch of the war in Ukraine. Belgium also shares in the blame. The IMF forecasts a growth of 2.1 percent in 2022, while in October it was still assuming 3.1 percent. For 2023, a growth of 1.4 percent is now expected.*
*The adjustment affects the budget, which was already derailed by the pandemic. Last year, the IMF assumed that Belgium would have the largest public deficit in the eurozone in 2026.*
*Now it is predicted that in 2027 the deficit will also exceed that of the US. Belgium will lead the industrialised countries, with an expected deficit of 5.4 per cent of gross domestic product (GDP). In the EU, Romania is at one with 5.8 per cent. The French deficit is put at 3.3 per cent of GDP, the Dutch at 0.8 per cent.*
*State Secretary for Budget Eva De Bleeker (Open VLD) responds that the government has to work on the agreed reforms despite the economic consequences of the war in Ukraine. Especially a plan to keep the pensions affordable is still pending. According to the IMF, Belgium will also be the leader in terms of public spending in 2027.*
Awesome!
Gives us 4,5 years to try to pass them. I’m sure that we can do it with some political good will!
Ah the everlasting worldwide infinite-growth Ponzi scheme.
So far its not that big of a problem considering negative/low interest rates and inflation. But they need to balance the budget within 5 years or it will actually be a problem ..
Cut all spending that has no decent ROI, in war times with high energy prices this should be justifiable.
Edit: in Belgium the majority of voters is dependant on govt (public servants, culture, welfare, pension,….) – countries with this imbalance typically go into a downward spiral as no one will vote against budget cuts. So brace yourselves people….The amount of downvotes will also confirm this.
Looks at Japan, starts to care less.
I for one welcome our new IMF overlords
Ok. Does not matter.
But our companys are very strong, they received all the money!!
Sigh… And who’s going to pay for it again. That’s right, the upper middle class.
We can pass it with all thheir whoes..l.
You’d hope that living through a pandemic and a war that snuck up on everyone would instill some humility on those making budgetary predictions 5 years into the future.