Prime Minister Mark Rutte said today that the Dutch economy is soldiering on, despite the disappointing slump recorded in the first quarter, het Parool reports.
The Dutch economy has experienced a drop of 1.4 percent in the first quarter of 2014. According to the Central Bureau of Statistics (CBS), this was caused by lower gas usage due to the mild Winter. The bureau does say that the economy is still in recovery, despite the drop.
Although the Netherlands is lagging behind other European countries when it comes to economic growth, the European Committee expects the Dutch economy to finally rise above the 3 percent allowed budget deficit in 2015. The budget deficit for 2014 is still 3.2 percent, but is anticipated to be down to 2.9 percent in 2015.
With the new year around the corner the Dutch are a bit more positive about the future of the Dutch economy than previous years, as shown by results of a study by the Social and Cultural Planning Bureau (SCP), Monday.
The round-up of some of this week's most noteworthy events and news stories features Sint Maarten battling mosquitos that spread the Chikungunya virus, the Dutch economy making a sharp fall, King Willem-Alexander's first Christmas speech, the sale of 100 Leopard tanks to Finland, the new record by "Serious Request" after being locked up in the Glass House, and a major storm that misses most of the Netherlands.
The Dutch economy will tumble from the eighteenth to the thirtieth place in the global ranking between now and 2028, predicted the Centre for Economic and Business Research (CEBR) Thursday.
The Dutch economic recovery is expected to continue in 2014 with 0.5 percent growth, according to numbers released by the Netherlands Bureau for Economic Policy Analysis. The governmental office, also called the CPB, said they do not expect the labor market to recover next year.
King Willem-Alexander read the throne speech for the first time this Tuesday in the Hall of Knights in The Hague. In it he spoke, among other things of the chance of recovery in the economy and the disappearance of the welfare state.
Prime Minister Mark Rutte counts on the Tuesday presented package of six billion in additional spending cuts being the last addition to the coalition agreement.
Activity in the Dutch industry increased in August to the highest rate since April 2011, according to figures of the Dutch Association of Purchasing Managers ( NEVI ), who announced this on Monday.
The purchasing managers index reflects the activity, that rose from 50.8 in July to 53.5 last month. A position above 50 indicates growth, below 50 indicates shrinkage.
"Production increased sharply due to the largest increase in new orders since April 2011. Sales to abroad reached the highest level in 28 months," says the NEVI.
The government has almost an agreement with the pension funds on investments in the Dutch economy. Most probably this agreement will lead to the formation of a national mortgage bank, where pension funds can take over mortgages of Dutch banks.
Jeroen Dijsselbloem, Minister of Finance, confirmed that talks are now being finalized "at breakneck speed" Tuesday the parties were together for the last meeting at the Ministry of Economic Affairs.
The Dutch government has retrieved on Monday 3 billion euro with the reopening of short-term loans. The interest was thereby, also for the shortest loan, higher than 0 percent.
Finance Minister Jeroen Dijsselbloem said the Netherlands will not make an effort to maintain its budget deficit within the European Union (EU) limits in 2014.
The round-up of some of this week’s most noteworthy events and news stories features the complete coverage on Prince’s Friso’s Death and the art heist in Rotterdam, Pirate Bay’s latest answer to its accessibility hitch, a fresh Fox Netherlands campaign, a group of devastated fans during a surprise concert in Amsterdam, and responses to the Dutch debt crisis.
The economic recovery for the Netherlands is not happening yet and therefore the deficit for the Netherlands remains far too high. Next year, the deficit is 3.9 percent. That was announced the Central Planning Bureau (CPB) and the Central Bureau of Statistics (CBS) on Wednesday. What are the political reactions?
The government accepts that the Netherlands will not meet the European standard of three percent next year. But there will be no more than 6 billion cut, said Jeroen Dijsselbloem Minister of Finance on Wednesday in response to the new estimates from the CPB.
On Thursday, CBS reported that 4983 businesses and establishments confirmed bankruptcy in the Netherlands during the first half of 2013, according to the Dutch national statistics office.
The Dutch government has requested the assistance of investors. According to De Volkskrant, the government has asked pension funds, insurers, and banks in assisting the stagnant economy to start again.
The government is looking, according to Prime Minister Mark Rutte, ‘constantly for the opportunity to get extra oxygen into the economy’. Rutte said this Wednesday during the parliamentary debate on the 6 billion euro in cuts, that the government is still searching for.
Netherlands’ economy dropped more than the initial estimate in the first quarter, according to Bloomberg Business Week.
According to latimes.com, the Netherlands has the highest household debt levels in the Eurozone. Many Dutch bought homes as property values rose in the 1990’sand 2000’s. Their U.S. approach in tax breaks and enthusiasm of banks persuaded borrowers to get huge mortgages.
With an economy that is shrinking even more than expected the Netherlands is doing worse than 21 other countries of the European Union. Only the economies of Cyprus, Greece, Spain, Italy and Portugal are shrinking more than the Netherlands. The economies of 17 other countries are growing.