Central bank expects surge in Dutch economy

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New estimates released by the Dutch central bank DNB suggest the Dutch economy is growing more strongly this year than expected. Since the Netherlands is an exporting nation, this is likely to be tempered by radical cutbacks being implemented around the world.

The DNB puts economic growth at 2.2 percent in 2011, significantly higher than the 1.6 percent predicted in the previous analysis. Most of the improvement is down to unusually strong growth in the first quarter.

However, the rate of growth is likely to slow in the second half of the year as government and consumers around the world reduce their spending. The DNB expects 1.7 percent economic growth in 2012 and 2.1 percent the year after.

The DNB once again issues a warning about the European debt crisis. If it worsens, the financial sector will suffer problems which could damage the whole economy. DNB director Lex Hoogduin called it “a ticking time bomb which has not been convincingly defused as yet.”

© Radio Netherlands Worldwide

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