OECD downbeat about Dutch economy

Wednesday 13 June 2012

The Organisation for Economic Cooperation and Development on Wednesday forecast the Dutch economy will shrink by 0.6% in 2012 and unemployment rise to 5.3%.

For 2013, the OECD expects economic growth of 0.7% but a further rise in unemployment to 5.7%.

In its report, the organisation says growth will depend on an improvement in world trade. Consumer spending will remain low as long as there is uncertainty about pensions, house prices and the European debt crisis.

The government budget must meet EU rules if the Netherlands is to keep the confidence of the financial markets, says the report. But if the economic situation deteriorates, the government must not allow budget cuts to stifle growth.

In a reaction, finance minister Maxime Verhagen told Trouw: 'The Netherlands has passed its economic exam. But we have a lot of homework to do in the coming months.'

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