Supported by strong and timely policy response, the Belgium economy has been resilient to a series of shocks. Still, the pandemic and energy crisis increased already-high public debt and structural fiscal deficits. At the same time, an aging population and the climate transition are putting pressure on public finances while low productivity and labour participation are dampening potential growth. Policies should continue to address this confluence of cyclical and structural challenges. Sustained and, ideally, front-loaded fiscal consolidation is needed to support disinflation, restore buffers, reduce debt, and preserve Belgium’s social model. Macroprudential policy tightening is welcome, as systemic risks are rising and additional strengthening of the financial policy framework will further insulate the economy from macro-financial shocks. Structural reforms in labour and product markets and further progress in green transition will boost potential growth and help address medium-term challenges.