Netherlands expects 3.9% economic growth this year; Slight rise in unemployment

The Dutch economy will grow slightly more than expected. Central planning office CPB expects economic growth of 3.9 percent this year, and 3.5 percent next year. Unemployment will increase after the coronavirus support measures are stopped, but only slightly to 3.4 percent this year and 3.5 percent next year, CPB said in its final Macro Economic Outlook that will be published on Budget Day next week, but which RTL Nieuws got an early look at.

Public finances are recovering slightly more slowly than expected in the CPB's initial estimates three weeks ago This year, the budget deficit will amount to 5.4 percent. Next year that will fall to 2.3 percent. Public finances will recover more once the coronavirus support measures are halted. An increase in tax revenues will also help.

The stronger than expected economic growth also means that the government debt is falling again - from 57.5 percent of GDP this year to 56.5 percent next year.

The CPB expects that collective bargaining wages will increase by 2.0 percent in 2021 and by 2.2 percent in 2022.

As wages are only increasing slightly, while inflation is rising, purchasing power will hardly move. On average, Netherlands residents will see their purchasing power increase by just 0.1 percent next year. The CPB pointed out that there are ranges in this. 5 percent of households will see their purchasing power increase by 0.8 percent, while another 5 percent will see their's decrease by at least 0.7 percent.