The Dutch economy will shrink by 3.5% this year and 0.4% in 2010, according to new estimates from the European Commission.

In the EU as a whole, the economy will decline by 4% this year and 0.1% in 2010, the Commission figures show. The Brussels’ estimates are largely in line with the latest forecasts from the Dutch statistics office CBS.
The Commission also says the Dutch budget deficit will increase to 6.1% next year. This is more pessimistic than the CBS’s last estimate of 5.5%.