CPB: growth is picking up to 1.7 percent – Parool.nl

05-03-15 9:37 pm – Source: Reuters

The economic growth increased again, reports the CPB. © anp

The economic growth in our country continues to grow: up 1.7 percent this year and 1.8 percent next year. This is evident from estimates by the Central Planning Bureau (CPB) today. The CPB estimates last December there was still an economic growth this year of 1.5 percent. That expectation has now been revised upwards to 1.7 percent

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This is evident from estimates by the Central Planning Bureau (CPB) today. The CPB estimates last December there was still an economic growth this year of 1.5 percent. That expectation has now been revised upwards to 1.7 percent. Economic growth this year falls to 0.2 percentage points lower by the government’s decision to reduce gas extraction in Groningen being.

Higher economic growth is mainly due to the decline of the euro versus the dollar favorably for the Dutch economy. This also applies to the sharp fall in oil prices. There has been a steady recovery, which is also supported from this year by domestic spending, according to the CPB.

Both consumption and corporate profits and investment gain this year boosted by low energy prices and low inflation. The development of our wages is moderate, but the low inflation, the purchasing power increased on average anyway. Consumption is growing this year by 1.5 percent next year and 1.7 percent

. Unemployment

Employment is up, but unemployment is falling only slightly to 7 percent in 2016. This year there are 645,000 unemployed, 635,000 next year. In 2014, there were 656,000 unemployed people.

The recovery of the economy is favorable for public finances. The budget deficit fall this year to 1.8 percent, well below the European standard of up to 3 percent. In 2016, the deficit has fallen further to 1.2 percent. The national debt would fall slightly this year to 68.8 percent of gross domestic product (GDP), lower than the forecast of last December. The government lowered even further next year, to 67.8 percent. According to the European sovereign fiscal rules must eventually be brought under 60 percent.

The public spending fall clearly for the first since 2009, from 47.3 percent of GDP in 2014 to 45.1 percent in 2016. In particular, government spending on health care and social security decline as a percentage of GDP.