Dutch Economy to Grow in 2014

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No image availableNL Times

The Dutch economic recovery is expected to continue in 2014 with 0.5 percent growth, according to numbers released by the Netherlands Bureau for Economic Policy Analysis. The governmental office, also called the CPB, said they do not expect the labor market to recover next year.

"It will be a year of economic recovery, stabilizing unemployment, lower inflation and a slight decrease of the budget deficit," the CPB said.

"The recovery is fragile, but visible on the overview of the economy," said Finance Minister Jeroen Dijsselbloem. "That is a boost going into the new year."

The organization expects the unemployment rate to increase to 7.5 percent, with 665,000 people out of work. The unemployment rate six months ago was seven percent. Though unemployment has held steady in recent months, the CPB is concerned that people are not going to look for jobs if the belief is that few available jobs exist.

Meanwhile, inflation is also believed to remain at 0.5 percent, 1.5% below the European Central Bank's target rate. Combined with a reduced tax rate for the lowest income bracket and lower cost basic health care insurance, the average Dutch person should see their purchasing power increase by one percent.