IMF predicts moderate economic recovery in the Netherlands

The International Monetary Fund (IMF) expects a moderate recovery of the Dutch economy, with a growth rate of 1.3% of GDP for both 2010 and 2011.

The International Monetary Fund’s top economist are less positive than their counterparts from the Central Planning Bureau (CPB), who predicted in March an economic growth of 1.5% in 2010 and 2% in 2011.

The new IMF forecast is better than the previous, in October last year. At that time, the IMF predicted an economic growth for the Netherlands 0.7% in 2010.

The IMF is also optimistic about the development of unemployment in the Netherlands. Unemployment will still increase this year’s, but considerably less than feared a half year ago.

In 2011, the unemployment rate will slightly decrease according to the forecast. In both years, unemployment remains lower in the Netherlands than in other eurozone countries.

Growth is uneven. China is projected to grow by a world-leading 10 percent in 2010, with India also at a rapid 8.8 percent. Major European nations are expected to grow by a combined 1 percent. The United States is projected to grow by 3.1 percent — better than the 2.3 percent average growth projected by the IMF for the advanced economies. The IMF said among the advanced economies, the United States is off to a better start than Europe and Japan.

Inflation is expected to be the next eighteen years hardly matters. In 2010 prices of consumer goods will increase by 1.1%, life in the Netherlands will probably be 1.3% more expensive next year.

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