Economic forecast for Netherlands slightly bleaker

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The Bureau for Economic Policy Analysis CPB has published new forecasts for the Dutch economy.

The CPB's previous report appeared in March and was based on assumptions of 1.5 percent economic growth this year and 2 percent in 2011. These figures have now been adjusted downwards to 1.25 percent this year and 1.75 percent next year.

Unemployment is expected to rise to 465,000 or 6 percent of the working population, while inflation will increase to 2 percent next year.

The budget deficit, however, should decrease in 2011 to 4.7 percent of the Gross National Product. This is based on the effect of economic measures already in place.

The bureau says the level of error in the estimates is greater than usual, mainly because the stability of the euro will depend on several countries adopting credible economic reforms and austerity measures.

It is also related to the cabinet formation talks and uncertainty about the economic policies which can be expected from the new Dutch government.


© Radio Netherlands Worldwide

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