The prospects for the Dutch economy are promising and any permanent damage from the coronavirus crisis will remain limited, the government’s macro-economic think-tank CPB said on Tuesday in its latest forecasts.

The CPB has raised its growth forecast for 2021 from 2.2% to 3.2% and to 3.3% next year. In addition, the agency says unemployment will remain limited to 4.1% in 2022, which is almost unchanged from period preceding the coronavirus crisis.

‘We are experiencing a remarkable crisis,’ said CPB director Pieter Hasekamp. ‘The crisis has been characterised by substantial decreases in production levels in certain sectors, followed by a strong recovery, as soon as the Covid-19 situation will allow for the related measures to be relaxed.’

Government support policies, the CPB says, have been very effective in cushioning the effects on both the labour market and production, so preventing major permanent damage.

Now, however, policy should focus on long-term challenges such as energy, education, the housing market and the labour market, the CPB said.

Last week, the OECD also said the Netherlands must use its recovery from the coronavirus pandemic to address long-term challenges including housing shortages, imbalances in the labour market and environmental pressures.

The OECD said the government’s response has helped the country to weather the crisis relatively well, with growth forecast to hit 2.7% this year and 3.7% in 2022.