Reform needed while economy good

11th April 2007, Comments 0 comments

11 April 2007, AMSTERDAM – The International Monetary Fund (IMF) says the Dutch economy is faring well at the moment. Economic growth of 2.9 percent is expected for this year, the Financieele Dagblad reports.

11 April 2007

AMSTERDAM – The International Monetary Fund (IMF) says the Dutch economy is faring well at the moment. Economic growth of 2.9 percent is expected for this year, the Financieele Dagblad reports.

The IMF expects growth in 2008 to be slightly less at 2.7 percent. In particular the ongoing growth in exports and confidence among businesses and consumers will contribute to this.

The IMF has advised the cabinet to take advantage of the favourable economic developments to push through a number of necessary reforms, like shortening the period in which unemployment benefits may be collected, limiting mortgage interest relief and raising the retirement age to 67.

The IMF wrote this in a report on the Dutch economy on Tuesday. It was drawn up on the basis of talks with ministers, officials, banks and regulators.

The IMF said that the country must take further measures to cushion the increasing costs that will accompany the ageing of the work force in the coming years. The researchers recommended that the cabinet aim for a higher budget deficit than the 1 percent surplus it is planning on currently.

[Copyright Expatica News 2007]

Subject: Dutch news

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