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More gloomy Dutch economic figures, budget deficit to remain too high

Friday 22 February 2013

The Dutch budget deficit will remain around 3.6% of gross national product for the next two years, well above the eurozone limit of 3%, according to new European Commission figures published on Friday.

The disappointing budget deficit forecast is one of several which show the Dutch economy performing worse than many other EU countries. In Europe as a whole, 'we expect economic activity to gradually accelerate,' the Commission statement said.

The Commission has also revised its 0.3% growth figure for the Dutch economy to a 0.6% contraction.  Although this will convert to 1.1% growth in 2014, the Netherlands will continue to trail most other European countries, the Commission said. It puts average eurozone growth at 1.4% next year.

Dutch inflation, at 2.6% next year, also outstrips the eurozone average of 1.5%.

The figures for the Dutch economy do not include the €3.2bn windfall which finance minister Jeroen Dijsselbloem announced last week.

European economic affairs commisioner Olli Rehn said in a statement that despite the pressure on short-term growth, there is 'growing investor confidence in the future'.

'We must stay the course of reform and avoid any loss of momentum, which could undermine the turnaround in confidence that is underway, delaying the needed upswing in growth and job creation,' Rehn said.

The figures come on top of a string of gloomy economic indicators from the Dutch nationals statistics office CBS on Thursday. They showed unemployment rising to 7.5% while consumer confidence reached a record low.

The full report

© DutchNews.nl


Readers' Comments

So far from all the articles, 8 of them are related to recession. Whoever is in charge, should be removed from office seeing as austerity plans & bank bailouts only make things worse.

Though raising VAT, fiddling with mortgage tax relief, increasing med insurance etc, people will continue to be cautious & spend less.

(To take a driving test for the 2nd time costs around €200+, WTF?!!) Just one example here of robbery, we are not all THAT dumb!

People on low wages are in the majority & the backbone for growth. If you keep taking from them, then don't expect to get a healthy return: overcharging & higher taxes do more damage than good, right? :P

By The visitor | 22 February 2013 2:47 PM

"We must stay the course" because? This course is leading to somewhere good?

By Patrick | 22 February 2013 4:36 PM

"All these reformations have completely destroyed the economy, but we must continue this path. Eventually it will go right!"

Insanity: doing the same thing over and over again and expecting different results.

By Someone | 22 February 2013 10:01 PM

Raising taxes and slowing the rate of growth of spending is the European definition of austerity. They need to look up the real definition in the dictionary.
Cutting spending, reducing taxes, and reducing regulations is the only path to a growing economy. It may cause a little pain in the short term as the economy is weaned off of government subsidy.

By Singelguy | 23 February 2013 5:43 AM

This is quite a worry. The economic fundamentals should be a lot better in the Netherlands than the rest of the EU. Is the Netherlands the next to go down the gurgler? Think it would be worthwhile to spend more on international tourism to get foreigners to contribute to the Dutch economy. It is such a beautiful country that doesn't promote itself as it should.

By Mandy | 23 February 2013 9:01 AM

@visitor My thoughts exactly. And those in power obviously don't care about the middle class.

By Ames | 23 February 2013 1:08 PM

this is expected and I dont think that it is going anywhere good. Dutch Govt is making life difficult for common people. high taxes, expensive insurance, cutting Govt relief such as for child care. It is becoming a very unattractive place to live. Dutch Govt should think about incentive to give relief to common people who are the major contributor in healthy economy.

By h Ashraf | 23 February 2013 4:22 PM

With 3 out of the 4 major Dutch banks having to be socialized due to mismanagement, and now not hitting the EU budget targets, I do not think the Netherlands will be able to hold it's current credit rating much longer. Unfortunately, but not really surprisingly, many of the upper managers that mismanaged the Dutch banks have just moved to other upper positions at other Dutch financial institutions, and therefore the mismanagement simply continues on, unabated. Plus the work ethics are quite 'different' from the US, where this recession already made its mark back in 2009, so I think NL and the EU will have a much tougher time coming out of this mess. The US is recovering now.

By Fred K. | 24 February 2013 9:59 PM

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