Central bank sees further economic decline, cabinet stands firm

The Dutch economy will contract by a further 0.6% next year, the central bank says in its latest economic forecasts.

This means unemployment will also rise sharply to 6.2% and the budget deficit will not meet eurozone targets in 2013 or 2014, the central bank said in a statement.
Consumer spending and investment continue to fall, as does government spending. In addition, economic problems in the rest of the eurozone are also affecting exports, a key motor of the Dutch economy, the central bank said.
New measures
The finance ministry said in a statement the new forecasts are worrying but there is no reason to take extra steps.
‘It is especially important to keep a steady course,’ the finance ministry said. The cabinet’s focus remains to ensure government finances are brought back under control.
In addition, the ministry pointed out that a number of organisations draw up economic forecasts and the cabinet bases its policies on the estimates produced by the macro-economic think-tank CPB.
The CPB forecast earlier the economy will grow by 0.75% next year, but is due to publish revised figures next week.