OECD Economic Surveys : Belgium 1967.

34 Pages·1.692 MB·English

by  OECD

BASIC STATISTICS BELGIUM
THE LAND
Area (1,000 sq.km) (cid:9) 30.5 Main urban areas (1965) inhabi-
Agricultural area (1,000 sq.km) 15.9 bitants:
Brussels (cid:9) 1,065,900
Antwerp(cid:9) 666,700
Liege (cid:9) 452,700
THE PEOPLE
Population (1966) (cid:9) 9,528.000 Net immigration (1966)(cid:9) 21,067
Number of inhabitants per sq.km Total labour force (1966) (cid:9) 3,838,000
(1966)(cid:9) 312 Wage and salary earners in agri¬
Population, net natural increase: culture (1966)(cid:9) 15,500
Yearly average (1964-66)(cid:9) 42,486 Wage and salary earners in manu¬
Yearly rate per 1,000 inhabitants facturing industries (1966)(cid:9) 1,084,000
(1966)(cid:9) 3.78
PRODUCTION
Grossnationalproduct(1966),billions Nationalexpenditure(1966)billionsof
of Belgian francs(cid:9) 900.9 Belgian francs:
Gross national product per head Private consumption(cid:9) 588.5
(1966) USS (cid:9) 1.891 Public consumption (cid:9) 121.0
Gross fixed investment: Gross fixed asset formation (cid:9) 194.1
Percentage of GNP (1966) (cid:9) 21.3 Net exports(cid:9) 10.1
Per head (1966) USS (cid:9) 408
THE GOVERNMENT
Current government expenditure on Composition ofthe House ofReprésenta¬
goods and services (1966): tives: %
Percentage of GNP(cid:9) 13.4 Christian-Social Party(cid:9) 36
Current government revenues (1966), Socialist Party (cid:9) 30
% ofGNP(cid:9) 31.7 Liberal Party (cid:9) 23
Central Government debt, 31-12-1966, Communist Party (cid:9) 3
Billions of Belgian francs(cid:9) 472.5 Others (cid:9) 8
Last election: 1965.
Next election: 1969.
LIVING STANDARDS
Calorics per head, per day (BLEU) Number ofprivate cars per 1,000inhabi¬
1964-65 (cid:9) 3,150 tants (1966)(cid:9) 140
Consumption of electricity per head Number of telephones per 1,000 inhabi¬
1966 (kWh) (cid:9) 2,243 tants (1966)(cid:9) 155
Number ofTVsets per 1,000inhabitants
(1966)(cid:9) 163
FOREIGN TRADE
Exports: Imports:
Main exports in 1966 (% oftotal exports) Main imports in 1966(percentage oftotal
(BLEU): imports) (BLEU):
Base metals(cid:9) 24 Machinery and equipment............ 15
Mach'nïry and Equipment ........... 10 Minerals(cid:9)(cid:9) 11
Textiles(cid:9) 9 Base metals(cid:9) 11
Transport Equipment (cid:9) 9 Textiles(cid:9) 5
THE CURRENCY
Monetary unit: Belgian franc. Currency units per US dollar: 50.
BASIC STATISTICS LUXEMBOURG
THE LAND
Area (sq.km)(cid:9) 2,586 Major city:
Agricultural area (1966, sq.km) (cid:9) 1,349 Luxembourg (1966) inhab. 76,500
Woodland (1963, sq.km) (cid:9) 840
THE PEOPLE
Population (1966)(cid:9) 332,700
Number of inhabitants per sq.km Total labour force (1966)(cid:9) 140,000
(1966) (cid:9) 129 Wage and salary workers in agricul¬
Population, net natural increase ture (1965)(cid:9) 1,000
(1958-64): Wageandsalary workers inindustry
Yearly average (cid:9) 1,300 (1965) (cid:9) 58,000
Per 1,000 inbabitanti(cid:9) 4.0
Net immigration (average 1958-63). 2,641
PRODUCTION
Grossnationalproduct(1964),millions Grossnationalproductatfactorcostby
ofLux, francs(cid:9) 31,596 origin (1964):
Grossnationalproductperhead,USS 1,900 Agriculture(cid:9) 6.3
Gross fixed investment(average 1962- Mining and quarrying(cid:9) 2.0
64): Manufacturing(cid:9) 40.9
Percentage ofGNP(cid:9) 32.1 Construction (cid:9) 8.8
Per head, USJ(cid:9) 696 Other(cid:9) 42.0
THE GO
Public consumption (1964), percentage Composition ofthe Chamber: %
ofGNP (cid:9) 11.1 Christian Social Party (cid:9) 39
Currentgovernmentrevenue (1964) per¬ Workers Socialist Party(cid:9) 38
centage ofGNP(cid:9) 33.7 Democratic Party (cid:9) 11
Central Government debt. Decem¬ Communist Party (cid:9) 9
ber 31st, 1966 (Billion Lux. Fis).... 10.7 Others (cid:9) 3
Last election: 1964.
Next election: 1969.
LIVING STANDARDS
Grotsavengehourly««rnlng»(1965),Lux. Number oftelephones per 1,000 inhabi¬
francs(cid:9) 61 tants (1966)(cid:9) 224
Numberofprivatecarsper1,000inhabi¬ NumberofTVsetsper 1,000inhabitants
tants (1966)(cid:9) 187 (1966)(cid:9) 93
THE CURRENCY
Monetary unit: Luxembourg franc. CurrencyunitsperUSdollar: 50.
ECONOMIC SURVEYS BY THE OECD
Archives -
Références
- DOC PRÊTÉ -
RETOUR BUREAU 706
BELGIUM-LUXEMBOURG
ECONOMIC UNION
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
The Organisationfor Economic Co-operation andDevel¬
opment was set up under a Convention signed in Paris on
14th December 1960 by the Member countries ofthe Organ¬
isationfor European Economic Co-operation and by Canada
and the United States. This Convention provides that the
OECD shall promote policies designed:
to achieve the highest sustainable economic growth
and employment and a rising standard of living in
Member countries, while maintainingfinancial stabi¬
lity, and thus to contribute to the development ofthe
world economy;
to contribute tosoundeconomicexpansion in Member
as well as non-member countries in the process of
economic development;
to contribute to the expansion of world trade on a
multilateral, non-discriminatory basis in accordance
with international obligations.
The legalpersonalitypossessed by the Organisationfor
European Economic Co-operation continues in the OECD,
which came into being on 30th September 1961.
The members ofOECD are: Austria, Belgium, Canada,
Denmark, France, the FederalRepublic ofGermany, Greece,
Iceland, Ireland, Italy, Japan, Luxembourg, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the
United Kingdom and the United States.
This document was approved
by the Economic and Development Review Committee
in November 1967.
CONTENTS
Introduction (cid:9)
I The Belgian economy in 1966-1967 6
Demand factors (cid:9) 6
Output (cid:9) 11
Employment and unemployment .. 11
Prices and incomes (cid:9) 14
II Economic policy in 1966 and 1967 16
Publicfinance (cid:9) 17
Recent economic policy measures.. 18
The problem ofthe Belgian publicfinances 20
in Prospects (cid:9) 26
IV The Luxembourg economy in 1966-1967 28
V Conclusions (cid:9) 30
Statistical annex 34
LU
CD
<
û.
<
Où
ECONOMIC SURVEYS
BELGIUM-LUXEMBOURG ECONOMIC UNION
INTRODUCTION
Theslowdowninthegrowth ofthe Belgianeconomycontinuedin 1966
and became even more pronounced in 1967. In 1966 the domestic factors
contributing to the weakness of demand were reinforced by the effects of
the deceleration in world trade, particularly important for Belgium's
export-oriented economy. The level of industrial production has remain¬
ed virtually unchanged since the winter of 1965-66, whilst unemploy¬
ment, after rising slowly during 1965 and 1966, increased sharply in the
first months of 1967. The pressures on prices and wages became less
pronounced since the second half of 1966. The volume increase of the
gross national product in 1966 was less than 3 per cent. It is unlikely
to exceed 2.5 per cent in 1967.
The general orientation of economic policy in 1966 continued to be
restrictive. Credit controls were reintroduced in April 1966 and the dis¬
count rate was raised in June 1966. In spite ofa rapid growth in govern¬
mentspending, theincreaseinindirecttaxationasfromthebeginningofthe
year coupled with a cut in extra-budgetary expenditure caused a reduction
intheoverall deficit, so thatthefinal effectofpublicfinances onthe econo¬
my was appreciably less expansionary than in 1965. Monetary policy has
eased considerably in 1967. The central bank has lowered its discount
rate several times and the creditrestrictionshavebeen removed. The 1967
budget, in its initial form, was aimed at achieving equilibrium in ordinary
operations. Early in the spring of 1967 the government asked for and
obtained special powers to encourage enconomic expansion and reorganise
the public finances.
The present survey begins with a review ofgeneral economic trends in
1966-1967 (PartI), goes onto consider economicpolicy duringthat period,
with special reference to the public finances (Part II), and then discusses
economic prospects for the near future (Part III). The economic situation
ofthe Grand Duchy ofLuxembourg is reviewed in Part IV, and finally the
economicpolicyproblemsatpresentconfrontingthe Belgianauthoritiesare
discussed in the Conclusions.
I. THE BELGIAN ECONOMY IN 1966-1967
Demandfactors
Theprogressiveweakeningofaggregatedemandwasalreadynoticeable
in 1965. The announcement that an increase in indirect taxation would
comeintoforcefrom 1stJanuary, 1966,coupledwithfirmerexternaldemand
caused a spurt in activity during thewinter of 1965-1966. But this phase
was short-lived. Thecontinued enforcement oftherestrictivepolicybegun
in middle 1964 and the relapse of external demand in 1966 brought a
further slowdown in the expansion ofdemand and production throughout
1966, which seemed to become more pronounced in 1967. In real terms,
thegrowth ofthegrossnationalproductin 1966was2.7percent(asagainst
3.5 per cent in 1965 and 6.9 per cent in 1964.) The bulk ofit, moreover,
was already achieved by the beginning ofthe year. For 1967 the rate of
growth will be about 2.25 per cent.
The growth ofprivate consumption slowed down in 1966 (+ 2.9 per
cent in volume, as against 4.1 per cent in 1965 and 3.4 per cent in 1964).
A large number ofpartial indices suggest that this trend has become even
moremarked in 1967. Theindexforproduction ofnon-durable consumer
goods (seasonally adjusted) recovered temporarily in early 1967, but the
index fortheproduction ofconsumer durables declined continuously from
the end of the fourth quarter of 1966, so that the average for the first
eight months of 1967 was 3.2 per cent lower than that of the correspond¬
ing period of 1966. Department stores' sales figures (seasonally adjusted)
seem to have made no progress since the beginning of the year. Even
then it must be remembered that they are being sustained to some extent
by the modernisation of the distribution system. The development of
private consumer demand seems to be conditioned by caution on the part
of consumers with regard to the future trend of business and employment,
by rising unemployment and the slower rate of growth in real disposable
incomes (see page 14).
Public sector demand again rosesharplyin 1966. Publicconsumption
went up by 10.8 per cent in value and 6.5 per cent in volume, and public
investment by 38.5 per cent and 27.3 per cent respectively. However,
the stimulus which this growthin public spendinghad on the economy was
partly offset by theincrease in publicrevenue (13.8 per cent). The current
transactions account ofgeneral government (accordingto national account¬
ing concepts) shows net savings of B.Fr. 11.6 billion (4.9 billion in 1965).
In 1967therate ofgrowthinpublicconsumptionslowed downappreciably,
and despite an acceleration in publicinvestment, aggregate public demand
will probably show a smaller increase than in 1966 (about 9 per cent in
value and 5 per cent in volume).
Table 1. SUPPLY AND USE OF RESOURCES
Billions ofBelgianfrancs.
1964 1965 1966 1967
B B
Supply:
Grossnationalproductatmarketprices + 6.9 779.2 + 3.5 847.4 + 2.7 906.4 + 2.25 960.0
Imports of goods and services1 (cid:9) + 10.7 295.0 + 7.5 320.0 + 7.9 355.2 + 1.0 360.0
Total (cid:9) 1,074.2 1,167.4 1,261.6 1,320.0
Uses:
Privateconsumption (cid:9) + 3.4 504.5 + 4.1 549.4 + 2.9 588.5 + 1.5 618.0
Publicconsumption (cid:9) + 4.1 98.0 + 6.9 109.2 + 6.6 121.0 + 3.5 132.0
Grossinvestmentbyenterprises* (cid:9) + 19.1 153.8 + 0.7 159.9 + 4.4 172.0 3.5 171.0
Gross investment by theauthorities .. + 22.5 23.0 13.7 21.9 + 31.1 29.5 + 6.5 32.5
Exports of goods and services1 (cid:9) + 11.3 295.0 + 8.2 327.0 + 3.8 350.6 + 4.0 366.5
1. Including factorincome.
2. Includingchanges in stocks.
A. Increase or decrease in volume as compared with previous year.
B. Absolute values at current prices.
Sources: (1964 to 1966) Institut National de Statistiques National Accounts.
(1967) Ministry ofEconomic Affairs.