Dutch economy expected to grow almost 4% in 2021
The Dutch economy is expected to grow almost twice as fast this year as was initially predicted, according to the latest predictions from the government’s macro-economic think tank.
In its August report, the CPB says that it expects economic growth of almost 4% in 2021 – a dramatic improvement on its earlier suggestions that the Dutch economy would grow by just 2.2% this year.
Similarly, predictions that unemployment would shoot up to 10% simply did not happen, and the most recent CBS jobless statistics show that last month just 3.1% of people were out of work. There has also been an economic bounceback over the summer due to more people shopping, eating out and holidaying.
Now, the CPB is predicting that unemployment will rise slightly to 3.6% next year when government measures to boost companies during the coronavirus pandemic come to an end.
‘Although the economy as a whole will recover quickly, the presence of the coronavirus remains an important factor,’ the body adds in a news release. ‘Due to uncertainty, specific restrictions on contact or a change in demand, a limited number of sectors continue to suffer from corona, and will probably continue to do so.’
The body, whose predictions will be used to form the basis of the government budget for 2022, also believes that more companies that are being kept afloat solely by coronavirus support will soon close. A spokesman confirmed to DutchNews.nl that the CPB believes that this will be economically beneficial, freeing up labour to relieve the tight jobs market elsewhere.
The government budget deficit, predicted to be 5.3% this year, is likely to drop to 1.8% in 2022, once support measures stop in the last financial quarter.
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