In response to these figures, the IMF has advised Belgium to implement substantial budget cuts and fiscal consolidation measures. This recommendation comes in light of Belgium’s high debt-to-GDP ratio and the anticipation of higher borrowing costs in the future. The IMF’s stance, however, has been met with criticism from workers’ groups such as the European Trade Union Confederation (ETUC), who argue against compromising worker well-being in an effort to control inflation.
ETUC General Secretary Esther Lynch suggested alternatives including windfall taxes on excessive profits and promoting fair, progressive taxation systems. The IMF, however, countered that windfall taxes could disrupt credit availability and costs. Amidst substantial geopolitical risks such as China’s weaker-than-expected growth and potential escalation of Russia’s war in Ukraine, the IMF underscored the importance of robust capital buffers.
In contrast to Belgium’s economic outlook, service-oriented economies with large tourism sectors like France and Spain are showing signs of rapid recovery from the pandemic’s impacts. Data from the United Nations World Tourism Organization (UNWTO) predicts a return to up to 95% of pre-pandemic tourist numbers by year-end.
The World Economic Outlook (WEO) Report estimates global economic growth at 3.0% in 2023 and 2.9% in 2024, a decrease from the previous year due to lingering effects of the pandemic, Russia’s invasion of Ukraine, and a cost-of-living crisis. The November 2023 World Tourism Barometer predicts international tourism reaching 80%-95% of pre-pandemic levels, with continued recovery expected in Q4 due to pent-up demand and increased air connectivity, especially in the Asia-Pacific region.
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