Rabobank: Dutch economy to grow faster after tax cuts
The Dutch economy is going to grow even faster after the government's planned tax cuts, according to Rabobank's quarterly economic report. The Dutch gross domestic product is expected to grow by 2.25 percent this year and 2.75 percent next year. Much stronger growth than last year's 0.9 percent.
According to the bank, the improving employment rate and the government's planned tax cuts has given consumption next year an extra boost. The relatively weak euro will also help exports increase further, despite a possible decline in demand from some emerging markets. The economic growth is also supported by exports and domestic spending.
The bank does however warn that not everyone will notice the improving economy immediately. While unemployment is steadily declining, it is still higher than before the crisis. "There is still a long way to go before all the damage has been repaired", according to the bank.
There are also a number of threats to the economic growth. The bank believes that the situation in Greece may well pop up again with negative effects for the Dutch economy. And the slowdown in China and other emerging markets could also affect Dutch exports, especially when it comes to raw materials like oil and gas.