Economy growing faster, but still slow: Rabobank

The Ducth economy will grow by 1.5 percent in 2015, twice as fast as in 2014. There is however no reason for exuberant optimism, say economist of Rabobank in their Vision of 2015. Although the unemployment rate is decreasing, it still remains high. The positives are that the disposable income of households has increased for the second year in a row and the continued recovery in the housing market. As a result the economic growth will be less dependent on exports next year. Yet there is no reason for celebration. "The outlook for the global economy is far from spectacular, with the euro zone as a problem child, and there are a considerable amount of risks that could severely disrupt global growth," said chief economist Wim Boonstra. "The Dutch economy will do considerably better in 2015 than in the years behind us, but here we have to settle with a very moderate growth still far away from the growth rates that we were accustomed to before the crisis." In their Vision for 2015, the economists say that there is a great opportunity for the Cabinet to economically strengthen the reform of the tax system. "There is broad political support for simplifying the allowance system and reducing the burden on labor. A reduction in taxes on labor, both employers' costs and payroll taxes for workers, can strengthen the existing policy to increase the the workforce." said Boonstra.