The prospects for the Belgian economy in 2021-22 depend very much on how fast we will control the virus.
In theory, a rapid recovery is possible given the temporary and exogenous nature of this crisis. Moreover, the recent vaccine news is hopeful. But the uncertainty remains very high. It's impossible to rule out the third wave of infections, and the vaccination process's roll-out could suffer delays. This paper briefly examines four scenarios, each in terms of economic growth and public debt development.
The results show that it is also imperative from an economic point of view to quickly contain the virus. Otherwise, the economic damage could be substantial.