Economic growth revised down, jobless total shrinks

The Dutch economy will grow 1.25% this year, not 1.5% as forecast in March, the government’s macro-economic forecasting agency CPB said on Wednesday, highlighting the need for economic reform.

Next year, growth will reach 1.75% not 2% as forecast earlier, the CPB said.
This means the budget deficit will shrink from 6.3% this year to 4.7% in 2011, the organisation said. This figure not take any economic policy changes implemented by the next government into account.
Coalition
According to the NRC, the new estimates were given to several party leaders during their cabinet formation talks earlier this week. The new figures show that the government’s finances are worsening and speedy action needs to be taken, the paper said.
But the estimates are likely to be less accurate than normal because of international and national developments, the CPB said. ‘Various [EU] countries have to come up with reliable reform and cost cutting measures in order to ensure the stability of the euro,’ it said in a statement.
Jobs
In addition, the official unemployment rate will reach 6% of the working population in 2011, not 6.5% as forecast earlier this year, the CPB said.
Inflation will reach 1.5% this year and 2% in 2011.