Going for Growth - Belgium

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Belgium Income per capita has been lagging that of the upper half of OECD countries and the gap has widened due to a decline in labour productivity growth. However, labour productivity levels remain amongst the highest in the OECD. Income inequality is relatively low. Greenhouse gas emissions are around the OECD average, while exposure to air pollution is higher than the average in advanced economies. Progress on past priorities has been modest. Taxation of labour is set to decline further, thanks to multiyear reforms decided in the past, but the tax wedge will remain relatively high. A reform of adult education has been adopted, and offers of training and validation of skills for newly arrived migrants have been introduced. Simplified procedures for retail establishment in Flanders and the Brussels Region entered into force from 2018. Easing administrative burdens and simplifying entry regulation in professional services, retail and network industries and streamlining the insolvency regime would boost competition and productivity growth. Further reducing the tax wedge on labour, particularly for the low-skilled, would encourage employment. Improving teacher training and attracting the best teachers to schools with high concentrations of disadvantaged students would raise skills and reduce inequality. Growth performance, inequality and environment indicators: Belgium Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate

A. Growth

Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio

2002-08 1.6 0.6 0.5 0.1 0.0 1.0 0.7 0.4 -0.1

2012-18 0.8 0.3 0.0 0.3 0.0 0.5 0.4 0.0 0.0

GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)

Per cent 30 25

Gap to the upper half of OECD countries5

GDP per capita GDP per hour worked

20 15 10

B. Inequality and environment

Gini coefficient3 Share of national disposable income held by the poorest 20%

C. The gap in GDP per capita has been widening

Level

Annual variation (percentage points)

5

2016 26.6 (31.7)*

2013-16 0 (0)*

0

9 (7.6)*

0 (0)*

2016 10.3 (10.9)* 0.3 (0.3)* 0.3

Average of levels 2010-16 10.7 (11.3)* 0.3 (0.3)* 0.3

-5 -10 -15

Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933954667

ECONOMIC POLICY REFORMS 2019: GOING FOR GROWTH Š OECD 2019


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Going for Growth - Belgium by OECD - Issuu