The European Commission said on Tuesday it expects to see slight growth in the Dutch economy in 2014, but less than forecast earlier this year.
European economic and monetary affairs commissioner Olli Rehn said he is forecasting a rise of 0.2% in GDP in 2014, down from the 0.9% forecast in May. Growth in 2015 could reach 1.2%.
These figures mean the Dutch economy is faring worse than the average across all the other euro countries and the EU members.
The commission has also downgraded its forecast on the Dutch unemployment figures. Unemployment will rise in 2014 to 8% and fall in 2015 to 7.7%. In May, the figure for 2015 was 7.2%.
Inflation is expected to fall from 2.7% this year to 1.7% in 2014 and 1.6% in 2015.
Rehn said low consumer confidence and problems in the housing market were depressing growth in the Netherlands.
Despite government spending cuts he does not expect the budget deficit to reach the 3% demanded by the EU. It will remain at its current 3.3% throughout 2014.
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