OECD expects 1.3% economic growth this year in Belgium

The Organisation for Economic Co-operation and Development (OECD) expects Belgium’s economy to grow by 1.3% this year and by as much as 1.8% in 2016. OECD attributes the gradual economic growth to rising exports and investments. Domestic demand, meanwhile, remains weak due to widespread budget cuts and wage moderation in Belgium.

The organisation recommends that Belgium reform its wage setting mechanism, put an end to automatic wage indexation and re-introduce a lower minimum wage for young workers, all points that will not go unprotested by most union groups in the country.

The OECD also advocates a tax shift away from high labour taxation and towards environmental and consumption taxes.