Positive economic outlook for the Netherlands, according to the OECD

The Dutch economy is expected to grow by 1.4% in 2015 and by 1.6% in 2016, according to figures from the OECD released on Tuesday.

This is a considerable improvement on the expected 0.8% growth forecast for 2014 and will result in a slight drop in the budget deficit to 2.3% in 2015 and 2.2% in 2016.

The OECD is also forecasting an improvement in the unemployment figure, currently at 6.8%. This will drop to 6.6% in 2015 and to 6.2% in 2016.

The figures are in line with the OECD’s expectations for the eurozone of 1.1% growth in 2015 and 1.7% in 2016.

The Paris-based think-tank says the Dutch housing market is showing signs of improvement, although prices remain 20% lower than at their high point in 2008, putting many houses in negative equity.

This forms a risk for the banking sector, says the OECD, but new rules such as a cut in mortgage tax relief and a lower loan-to-value ratio should reduce the financial risks.