Dutch economy expected to grow annually by 1.8 percent to 2021

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The Dutch economy will grow an average of 1.8 percent per year in the period 2018 to 2021, according to the medium-term expectations of the Central Planning Bureau. Despite the economic growth, the CPB warns that Dutch households' purchasing power will not increase, NU.nl reports.

Unemployment will decrease gradually from this year's 6.5 percent to 5.5 percent in 2021. The budget deficit estimated at 1.2 percent of GDP in 2017, will turn into a surplus of 0.6 percent in 2021. Inflation will be 1.6 percent.

The average Dutch households will not benefit from the economic growth, according to the CPB. Though employees will see a slight increase in purchasing power due to contractual wage increases of 0.3 percent. Retirees and welfare recipients will see their income decrease by 0.2 percent. The CPB expects a further increase in income inequality after 2021.

The CPB warns that the Dutch economy remains vulnerable to continuing international uncertainties. Factors like a Brexit, terrorist threats, the growth in China and the monetary police in the United States and Europe, may hinder economic growth and inflation.

The CPB's medium-term expectations report is traditionally published a year in advance. The publication serves as the basis for the pricing of parties' programs for the upcoming elections.

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