NL economy expects strong growth

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No image availableNL Times

Although the Netherlands is lagging behind other European countries when it comes to economic growth, the European Committee expects the Dutch economy to finally rise above the 3 percent allowed budget deficit in 2015. The budget deficit for 2014 is still 3.2 percent, but is anticipated to be down to 2.9 percent in 2015. The European economy is steadily recovering, according to the European Committee.

The growth for this year is anticipated at 1.5 percent (1.2 percent for the euro zone), and 2 percent (1.8 percent for the euro zone) for 2015. Netherlands and France are performing below the European average. The lag in the housing market, resulting in consumers saving their money instead of consuming and investing, is thought to be an important reason for the Dutch overall poor economic growth. Cyprus and Slovenia are the only European countries to experience a negative economic growth this year, with Greece showing a remarkable recovery. By the end of May the Committee will have the definite reports, after which they will be able to determine whether the Dutch will have to enforce even more cutbacks. European Commissioner Rehn for Economic Affairs is pleased with the preliminary numbers, but warns the economic growth is still too weak to positively affect the high unemployment rate of 10.7 percent in the EU. Minister of Finances, Jeroen Dijsselbloem wants to let the economic recovery run its course, while the government keeps working on organizing government spending. The data from the European Committee will be used during the budget preparation this spring.