The economy will grow 1.25% next year, not 1.75% as forecast earlier, says the government’s economic planning unit CPB. This year’s estimate is unchanged at 2.25%.

Inflation will also rise to 3.5% next year, hitting spending power, the CPB says. Households will have on average just 0.25 percentage point more to spend in 2009, rather than a full 1% boost.
Unless the government takes action, poor pensioners and single people will see their spending power go down, the CPB says.