The Dutch economy will not grow in 2014 and unemployment will continue to rise, according to economists from Rabobank in their latest forecast.

A shortage of cash for consumers, banks and governments will hinder the recovery and further cuts would be very unwise, the bank says in its Vision for 2014.

The prospects are better for after 2014, when the economy will stabilise, the report states. Nevertheless, the Netherlands will remain vulnerable to economic developments elsewhere.

Exports

Both the national statistics office CBS and the government’s macro-economic planning bureau CPB forecast limited growth in 2014.

Meanwhile, the CBS on Wednesday published figures emphasising the problems still facing the Netherlands.

Exports, seen as the main motor of the Dutch economy, were marginally lower in September. And retail sales were down 2% in the third quarter with non-food shops particularly hard hit, the CBS said.