The Dutch economy will return to modest growth of 0.5% next year after contracting 1% in 2013, the Dutch central bank said on Monday.

Growth will reach 1% by 2015, when employment will also rise for the first time since 2011, the bank said in its latest half-yearly statement.

In addition, after seven years of declining spending power, people will have ‘significantly more’ disposable income in 2015, the central bank said.

The recovery will remain modest because households, banks, pension funds and the government are all giving priority to improving their own finances. This process has not been completed and is currently putting a brake on domestic consumption, the bank says.