DNB economic growth downwards – NU.nl

DNB economic growth downwards – NU.nl

The next year in 2016 and is growing gross domestic product (GDP) by 1.2 and 1.5 percent, respectively.

Six months earlier, the supervisor went from a growth of 1.6 percent in both years. For this year, the growth rate is adjusted upwards from 0.2 percent in June to 0.8 percent now.

According to a report published Monday by DNB on the economic development and prospects in the Netherlands.

Despite the slightly negative growth rates, DNB sees a broader basis for economic recovery. This is mainly due to the contribution of domestic spending on the economy. In recent years the Netherlands had to rely mainly on exports, this year’s growth is due entirely to the even output.

Yoke

Consumers loved for years hand on the purse strings, but now DNB expects for 2016 that the contribution of domestic demand to economic growth is greater than the contribution of exports. If this prediction comes true, that would be the first time since 2008.

“With the Dutch economy seems to yoke the credit crunch gradually to throw himself off,” DNB wrote.

the central bank looks to improve public finances. The budget deficit has long been under the European standard of 3 percent. This year the deficit was 2.4 percent, in 2016 it falls further to 1.8 percent.

The debt will decline in 2016 even for the first time since the outbreak of the credit crisis, but remains 68 , 8 percent is still above the threshold of 60 that was agreed in the Stability and Growth Pact.

Move the cursor over the line to see the rates . The data comes from DNB. – (C) NU.nl/Jerry Warn

Unemployment

The job market seems to also recover following the economy. 2.5 years after the employment has shrunk, rises since this year. That advance comes to a halt next year because more people will offer themselves in the labor market, DNB expects.

Also, the unemployment rate over the next two years, 25 percentage points above the estimated equilibrium level. “This indicates that the Dutch economy in the coming years not running at full speed, which continue to have a downward effect on inflation,” DNB.

writes

Move the cursor over the line to see the rates . The data comes from DNB. – (C) NU.nl/Jerry Warn

Inflation

Inflation In the Netherlands, as in the rest of Europe has long been very low. Within the eurozone is even feared imminent deflation, a threat to the fledgling economic recovery.

The measures that the European Central Bank takes shape at the low inflation according DNB also a risk. “Before you know it, you just blow all kinds of prices on the financial markets,” said DNB Director Job Swank Monday.

DNB expects that consumer prices rise slightly from 0.4 percent this year to 1 percent in 2016. Thus, the regulator maintains its forecast of half a year earlier. However, this remains far below the target of the European Central Bank of just under 2 percent

What you should know about inflation |. The dangers of deflation

By: NU.nl/Edo van der Goot