Spending power reduced less than forecast

The average household’s spending power will not go down as much as forecast this year and in 2011, according to confidential new estimates from the government’s economic policy analysts, quoted in Friday’s Telegraaf.

The paper says the new figures, which will be discussed in the cabinet today, show the Dutch economy is recovering slowly.
In February, the CPB said spending power would shrink by 0.75% this year, but this has been revised to 0.5%, the paper says.
The economy will grow 1.5% this year and 2% in 2011, while unemployment will remain stable at around 6.5%.
Nevertheless, the budget deficit will continue to mount, the new figures show. This year it will reach 6.3%, up slightly on previous estimates.
By 2011 the deficit will have been reduced to 4.9% – if planned measures are taken to get spending back under control, the Telegraaf reports.