Big drop in NL deficit; growth expected

The budget deficit is dropping quickly because of the growing economy. This year the deficit falls to 2.9 percent, and next year to 2.1 percent, according to new estimates from the CPB Netherlands Bureau for Economic Policy Analysis, who presented predictions for 2015 for the first time, the AD reports. The figures mean that the cabinet may not have to enforce extra cut-backs. Jeroen Dijsselbloem, minister of Finance, told BNR "as it looks now, new cut-backs are not necessary."

The deficit for this year was estimated at 3.1 percent in December, but may come to 2.9 percent, which brings it back into the norm of the European Union. Growth is also predicted, at 0.75 percent this year, and 1.25 percent next year. Unemployment is expected to go down in 2015, from the 650,000 people this year, as a result of rising job opportunities. Minister Dijsselbloem calls for a priority on lowering unemployment, "purchasing power has to be able to recover itself. That will happen, but we aren't there yet" he told BNR. Inflation rates will come to 1.5 percent both this and next year. The CPB is predicting a careful economic recovery. The European Commission was slightly more positive last year, and estimated economic growth for this year at 1 percent. The CBP predicted a o.5 percent growth rate for this year in December. The Bureau published the data on Tuesday. In two weeks, the definitive estimates for this an next year will be available, which will be explained by the new CPB director Laura van Geest.