The Belgian economy is by nature very open. This characteristic means that it is necessary to monitor and analyse developments in the world economy in order to prepare short-term forecasts and medium-term projections at the national level.
The Federal Planning Bureau produces many short-term forecasts and medium-term projections. Therefore the FPB analyses and monitors the world economy. In order to better analyse the functioning of the world economy and its effects on the Belgian economy, the FPB has developed two models:
the NIME model
the Nemesis model
The NIME model is a world macroeconometric model that reproduces the endogenous trade and financial flows between six large blocs of the world economy. It is used to:
produce medium-term projections of the world economy
assess economic shocks and policies
The NEMESIS model is a highly disaggregated econometric macrosectoral global model, allowing for a detailed analysis of the interaction between the economy, the energy and the environment in the main areas of the world economy. It is mainly used for studying economic shocks and policies.
Methods and tools
The NIME and Nemesis models are annual economic models using econometric techniques. The models are developed and implemented on the FPB’s econometric platform IODE and are simulated by means of “Gauss-Seidel”-type algorithms.
