What Has Been The Damage Of The Financial Crisis To Belgian GDP? An Assessment Based On The FPB's Medium-Term Outlook

Based on a comparison between different vintages of the Economic Outlook published by the Federal Planning Bureau, this working paper proposes a quantification of the impact of the financial and economic crisis on Belgian GDP. As such a crisis may affect medium-term output through different channels, the authors also examine, using a production function approach, the contribution of each factor to the loss in potential GDP. A consensus quickly emerged among national and international organizations, based on past experiences, that the financial crisis that erupted in 2008 would have a long-lasting impact on the level of output.