This Working Paper presents a medium-term macroeconomic outlook for the major economic areas of the world. The outlook was prepared using nime, the Belgian Federal Planning Bureau’s (fpb) macroeconometric world model. The Working Paper also features an assessment of the euro area’s progress towards the European Union’s Lisbon goals for growth and employment, a brief description of the nime model and an appendix outlining the major technical assumptions of this outlook.
This outlook extends the previous nime World Economic Outlook’s horizon from 2010 to 2011 and it updates the previous outlook following the release of new data, the re-estimation of the model’s equations and a refinement of the model’s demographic assumptions. The latter are now firmly based on the United Nations’ most recent “World Population Prospects”. Indeed, the new projection now integrates the slowdown in world population growth rates, as well as the ageing phenomenon, especially in areas such as Japan and, to a lesser extent, the euro area.