Monday, March 7, 2016 - 12:50
Netherlands economic growth prospects become less optimistic
The Central Planning bureau sees the Dutch economy growing by 1.8 percent this year, according to its central economic plan. This is somewhat lower than the 2.1 percent growth the CPB expected in December, NU reports. In its first estimate for next year, the CPB expects that the gross domestic product will grow with 2 percent in 2017. The number of unemployed people will decrease with 10 thousand to 570 thousand people. That comes down to an unemployment rate of 6.3 percent, compared to 6.5 percent this year. The decrease in unemployment means lower spending on unemployment benefits. But that will be counteracted by the lower gas production and price. The CPB warns that there are many uncertainties that may have a negative effect on the Netherlands' economy. These include the cooling Chinese economy and the recessions in Russia and Brazil. There are also concerns about slow growth in the United States. Closer to home, the Brexit - Britain's possible exit from the EU - and the debate about abolishing the Schengen agreement in response to the continuous influx of asylum seekers, also cause uncertainty. The low inflation is causing an increase in purchasing power, as well as the 5 billion euros in tax cuts implemented this year. The combination of the too will make people see their income increase by 2.3 percent this year. But due to rising prices, and the fact that there will not be 5 billion euros in tax cuts next year, all households will see their purchasing power fall to 0.2 percent in 2017.