Dutch economy growing faster than expected; 3.8% growth this year

The Dutch economy is growing faster than expected, the Bureau for Economic Policy Analysis (CPB) said in its draft macro-economic surveys on Friday. The economy is expected to grow 3.8 percent this year, and 3.2 percent next year. In June the CPB still expected 3.2 percent growth in 2021 and 3.3 percent in 2022, NOS reports.

Once the coronavirus support packages are phased out from this autumn, unemployment will increase slightly, according to the CPB, an important economic adviser for the Dutch cabinet. The unemployment rate will amount to 3.4 percent this year, and 3.6 next year - still below the pre-pandemic average.

The national budget deficit will amount to 5.3 percent this year, and 1.8 percent next year. That is slightly lower than the June expectations of 5.9 percent this year and 1.5 percent next year.

The cabinet uses the macro-economic surveys for national budget decisions in the run-up to Budget Day in September, when the national budget for the coming year is presented to parliament. The improved expectations give the cabinet a bit more room to spend extra money .