Dutch economy set to leave recession: Central Bank chief

7th October 2013, Comments 0 comments

The Dutch economy is likely to shrug off a year-long recession as international markets show signs of improvement, Central Bank governor Klaas Knot said on Monday.

Presenting a half-yearly report on the state of Dutch banks, Knot said in Amsterdam that "although the hard figures aren't out yet, it's my feeling that we're out of the recession."

The central statistics office is to release third-quarter figures on November 14.

"There are many signals to indicate this," Dutch public broadcaster NOS quoted Knot as saying.

One of the positive factors is that "the world (economy) is picking up, which is always an important indicator for the Netherlands," he said of the trade-dependent Dutch economy.

So far, the recession-hit Dutch economy has shown little signs of improvement with its central statistics office in September saying it had contracted by 0.1 percent in the second quarter.

It was the fourth contraction in a row since the second quarter of 2012, when a growth of 0.4 percent was logged.

Know warned that "politics remained the greatest risk" to the Dutch economy's recovery.

Prime Minister Mark Rutte's Liberal-Labour coalition is locked in talks with the opposition to get 6.0 billion-euro ($8.0 bn) in budget cuts approved by the Dutch Senate, in line with European Union recommendations.

Although given the thumbs up by Rutte's majority coalition in the Lower House, the unpopular plan still needs approval from the Upper House to go through.

There, government has to negotiate an agreement with small opposition parties to get a 38-seat majority in the 75-seat body.

"Politically there needs to be rapid agreement about government finances, also for 2014," Knot said.

© 2013 AFP

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