Budget Day leak: Economic growth, higher unemployment expected

After a deep dip of 5 percent, the government expects that the Dutch economy will grow by 3.5 percent next year. Unemployment will increase to 5.9 percent, but on average Netherlands residents will see their purchasing power increase by 0.8 percent, RTL Nieuws reports based on Budget Day documents in its possession.

The economic growth and unemployment figures are slightly more favorable than the bureau for economic policy analysis CPB expected in August. This is because the government's third coronavirus aid package was not included in those CPB calculations.

When it comes to purchasing power, employed people see the biggest increase with 1.2 percent. People on benefits will see a 0.5 percent increase, and pensioners a 0.4 percent increase.

Unemployment will increase from 419 thousand people in July to 545 thousand unemployed people next year. This increase is much slower than expected thanks to the coronavirus support measures. Before the third support package, it was expected that unemployment would rise to 6.5 percent of the Dutch workforce.

Sources told NOS that these figures are very uncertain, because the coronavirus crisis makes the near future very uncertain. According to RTL, these figures are all based on the assumption that the Netherlands will not have to go into another lockdown.