Dutch economy to return to growth in 2010

15th December 2009, Comments 0 comments

The Dutch bureau for economic policy revises its earlier forecast to predict a 1.5 percent growth for next year.

The Hague – The Dutch economy will bounce back in 2010 with 1.5 percent growth, the Central Planning Bureau said Tuesday, revising a previous forecast of zero growth.

The country's gross domestic product (GDP) is expected to contract by 4.0 percent this year owing to a strong drop in exports, said the CPB, which issues figures used by the government to draft the budget.

"In 2010, the Dutch economy will rebound with economic growth estimated at 1.5 percent," the CPB said in a statement.

The bureau said a healthier international economic environment led to a revision of its figures from September, when it had forecast zero growth for 2010.

Next year's growth will be fuelled by a resurgence in exports, which are expected to rise by 6.0 percent in 2010 after dropping by 9.5 percent in 2009, the CPB said.

The country's public deficit will rise to 5.8 percent of output in 2010 from 4.6 percent this year, it said. The national debt will rise to 67 percent of GDP next year compared to 45 percent in 2007 as the government receives fewer taxes during this sluggish phase.

The bureau also said unemployment in the Netherlands is likely to rise over the next few months to about 6 percent of the workforce or 510,000 people, which is 105,000 less than in previous forecasts.

Because the government is receiving fewer taxes during a sluggish phase of the economy, the Netherlands' national debt is expected to rise to 67 percent next year. It was at 45 percent in 2007.

AFP / Radio Netherlands / Expatica

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