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Dutch economy expected to grow 1.8 percent in 2016

Staff writer ▼ | June 7, 2016
The Dutch economy is expected to grow by 1.8 percent this year and by 2.1 percent in 2017, the Netherlands Bureau for Economic Policy Analysis (CPB) announced in its projections published.
Dutch economy
Economy in Europe   A rise in domestic spending
The growth is mainly attributed to a rise in domestic spending. Consumption levels are predicted to increase by 1.5 percent this year and 2.1 percent next year, due to an increase in household disposable income under continued low inflation.

The growth projection of 1.8 percent for this year, down from 2.0 percent in 2015, is the same as the last forecast in March this year. The projected growth for 2017 is 0.1 percent higher than March forecast.

"We have definitely left the crisis behind us and we can look to the future with optimism," deputy prime minister Lodewijk Asscher said about the CPB figures during a press conference in The Hague.

"The Dutch economy is in good shape," Asscher added. "The important thing is that people at home can feel it. The main priority of the government is to combat unemployment, which is still high."

Unemployment will drop slowly, from 6.9 percent in 2015 (614,000 people) to 6.4 percent this year (575,000) to 6.2 percent in 2017 (560,000). In addition, inflation will be low, with 0.1 percent this year and 0.9 percent next year.

According to the CPB, the global economy contribution to Dutch growth is marginal because global economic growth will remain limited, largely due to a slowdown in the growth of the emerging economies, although after years of recession and low growth levels, the picture is relatively positive for Europe.

The CPB named a number of specific risks that may slow down economic growth: the possible exit of Britain from the European Union, the weak financial situation in southern Europe, a slowdown in global trade, and the uncertainty about monetary policy in the United States and the eurozone.

On Thursday, Dutch national bank De Nederlandsche Bank (DNB) also published its forecasts. Similarly, the DNB noted a solid recovery for the Dutch economy, with domestic spending the main driver of growth. The DNB projected a growth of 1.5 percent this year, 1.9 percent in 2017, and 2.0 percent in 2018.