The economy is expected to grow by 2% in 2011 and 1.75% in 2012 and unemployment will fall in 2012 to 4%, according to the latest forecast from the government’s macro economic policy advisory group.

The budget deficit is expected to fall to 2.2% in 2012, down from 5.4% in 2010. In March, finance minister Jan Kees de Jager said he expected the budget deficit in 2011 to be 3.6%.
The advisory group warns that the debt crisis in Europe could have a negative effect on forecasts.