The Dutch economy will grow by more than expected this year and in 2015, taking the budget deficit below the 3% eurozone limit, the government’s macro-economic forecasting agency CPB said on Tuesday.

The CPB has upwardly revised earlier forecasts and says the economy will grow 0.75% this year and 1.25% in 2015. This takes the Netherlands out of the danger zone for further EU-driven spending cuts.

The budget deficit will be 2.9% this year, just dipping under the 3% limit, and will fall again to 2.1% next year, the CPB says. It will be the first time since 2008 that the budget deficit meets EU rules.

Unemployment

While unemployment will rise to 650,000 this year, there will be a slight drop in 2015. Spending power will also rise next year after years of contraction. Inflation will hover at around 1.5%.

The definitive CPB forecasts will follow in two weeks’ time and will be presented by new director Laura van Geest.

‘Improvement in both the global and the European economy will drive economic growth in the Netherlands through an increase in exports,’ the CPB said in a statement.

Last week, the European Commission also upwardly revised its Dutch growth figures.