The state of the Dutch economy worsened in May, according to figures from the central statistics office CBS on Monday. However, the Dutch state was able to borrow €1.1bn at an interest rate of 0%.

According to the CBS, the economy shrunk 1.1% in the first quarter of this year with three successive quarters of negative growth. This means the Netherlands is still officially in recession.
The capital market interest was 2.0% in May, the lowest level in ten years. House prices were 5.2% lower than a year earlier, and industrial sales prices were 2.6% higher than in April 2011.
Meanwhile, the state borrowed €1.1bn at 0% interest on a short loan that runs until August 31, the Nos website reports. It also refinanced a loan of €1bn until the end of the year at 0.014% interest.
Interest rates remain low because investors are keen to move their money to the northern countries of the EU. The interest on a ten-year loan is at an historic low for the Netherlands at 1.55%.