Recession More Severe Than Anticipated

The country’s recession will be deeper than earlier estimated. This will cause increase in joblessness and weakening of government finances, based on the latest official forecasts on Wednesday.

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The Netherlands Bureau for Economic Policy Analysis CPB said the gross domestic product will shrink by 1.25% this year while a 0.75% growth rate will be expected next year. The CPB anticipated a 1% contraction in 2013 and 1% increase in 2014.

These predictions serve as bases for the government in planning its yearly budget. CPB explained its updated forecasts did not cover its severity or possible impact.

CPB said the reduction in financial plan will meet the EU limit of 3% of GDP in 2013; however, it will increased to 3.9% next year.

Source: The Wall Street Journal