Belgium has a high level of productivity. However, growth of productivity has declined
quite strongly over the past two decades, and more so than in other advanced economies.
This is a worrying development, as fewer productivity gains mean less wage growth
and a slowdown in improvements to pensions, health care and well-being. This In-Depth
Productivity Review of Belgium assesses in detail the drivers of productivity and
recommends a 7-Point Action Plan to reignite productivity growth in Belgium. Reviving
productivity growth requires action in many areas cutting across governments and ministerial
competences. Measures are needed to instil more dynamism in Belgium’s economy, both
among businesses and in the labour market, and to make the public finances more growth-oriented.
In addition to recommending detailed policy measures to revive productivity growth,
the Review contains three analytical chapters that lay out the evidence base: Chapter
1 on economy-wide and sectoral trends in productivity; Chapter 2 on the role of firms
for productivity, with a focus on the dispersion of performance among businesses;
and Chapter 3 on the worker dimension of productivity, with a focus on the role of
wage bargaining and skills.