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Unemployment to stay above 600,000 despite economic recovery

December 7, 2015

DNB central bankUnemployment is unlikely to fall next year despite the Netherlands emerging from recession, the latest forecast from the Dutch central bank says.

The number of people out of work is expected to stand at 615,000 at the end of 2016 or 6.9% of the working-age population, equal to the present level. In 2017 the figure is expected to fall slightly to 606,000.

The influx of refugees is forecast to have a ‘very small positive effect’ on economic growth as a result of increases in government expenditure.

The bank expects GDP to grow by 1.9% this year and 1.7% in 2016. The slight slowdown is attributed to a less favourable global economic climate. Growth is forecast to recover to 2.2% in 2017.

Inflation will remain low at around 1%, the bank predicts. But the national budget deficit is likely to swell from 0.7% in 2014 to 2.5% in 2017, close to the European Union’s prescribed limit of 3%.

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