The Dutch economy is set to shrink 3.5% this year, much more than the 0.75% decline forecast in December, the government’s economic policy unit CPB said on Tuesday.

The downward revision has been made because the international economic crisis has had a much greater impact than expected, the CPB said.
The figures are still only provisional, the organisation said in a statement. Definitive figures will be published on March 17.
Unemployment will rise to 5.5% this year and 8.75% in 2010. But household spending power will rise by an average of 2.25%, the CPB said.