Dutch economy slowly on the path to recovery

The Dutch economy is slowly on the path to recovery, in the slipstream of the euro zone, with a projected ¾% this year and 1¼ % for 2015. For the current year, unemployment is expected to increase further up to 650,000 people, but will decline again, slightly, next year, as a result of improving employment opportunities.

Inflation for both years is projected at 1½%. This year, the government deficit will be 2.9%, and will decrease to 2.1% in 2015.

The main data in CPB’s Central Economic Plan 2014 were published two weeks ago and remain stable. Improvement in both the global and the European economy will drive economic growth in the Netherlands through an increase in export. With regard to domestic spending, investments in particular will increase, and for 2015 consumption is projected to increase for the first time in years, in line with a growth in wage income and benefits. Employment will continue to decline this year, but for 2015 labour demand is expected to improve and unemployment levels to decrease slightly, to 635,000 people. Inflation levels will remain moderate, with a percentage of 1½% projected for both this year and the next. Upward wage developments are expected to be modest due to the labour market situation. Median purchasing power this year will improve by 1¼%, as a result of lower health care and pension fund premiums, and for next year an increase of ¼% is expected.

For the first time since 2008, the government deficit will be below the Maastricht Treaty maximum budget deficit of 3%, and is projected to decrease further to 2.1% of GDP, next year.

In its Central Economic Plan 2014, CPB Netherlands Bureau for Economic Policy Analysis provides detailed information on current developments in the Dutch economy, also from an international perspective. Please note that in this report, the data revisions as announced by Statistics Netherlands (CBS) have not been taken into account.

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