Dutch economy to grow 1.8 percent this year

The Central Planning Bureau expects that the Dutch economy will grow by 1.8 percent this year, according to an estimate released on Friday. This growth is the same as what the CPB predicted in March, NU.nl reports. According to the CPB, the Dutch government's chief economic advisory body, the Netherlands' gross domestic product will grow by 2.1 percent in 2017, 0.1 percent more than the previous estimation. The number of unemployed people in the country will decrease by 15 thousand to 560 thousand people next year, amounting to 6.2 percent of the Dutch workforce. This year the unemployment rate will be 6.4 percent. Households will have more to spend which will be the driving force behind a consumption growth of 1.5 percent this year and 2.1 percent next year. Purchasing power will increase by 2.6 percent this year and 0.2 percent next year. The larger increase in 2016 can be attributed to wage increases and tax reductions. Inflation is expected to remain limited this year at 0.1 percent due to the moderate wage development, a limited increase in selling prices and a drop in import prices. The CPB expects an inflation rate of 0.9 percent next year due to higher oil prices. The dangers that currently threaten the Dutch economic recovery are mostly external, according to the CPB. These dangers include the UK possibly deciding to leave the European Union, further slowdown in global trade and the deepening debt crisis in Southern Europe.