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Dutch government think-tank cuts economic growth forecast

March 7, 2016
People are spending more. Photo: Dolfilms via Depositphotos.com
People are spending more. Photo: Dolfilms via Depositphotos.com

The government’s macro-economic think-tank CPB has revised down its economic growth forecasts for 2016.

The CPB now says the Dutch economy will grow 1.8% this year, a drop of 0.2 percentage point on its forecast of six months ago during the annual budget presentation.

The CPB says the economy is stable and people are spending more, thanks, in part, to the €5bn package of tax cuts and falling unemployment. However, the decision to cut back gas production in Groningen province because of the earthquake risk will have a negative effect on full year growth.

Internationally, unrest on the financial markets, the threat of a Brexit and the possible suspension of the Schengen open border area are having an impact on the Dutch economy, the CPB said.

Last week, Rabobank economists said the Dutch economy would grow by 2% this year.

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