CPB maintains growth forecast in economy mode – NU.nl

This appears Friday in an estimate of the Central Planning Bureau (CPB).

In 2017, growth in gross domestic product (GDP) to grow by 2.1 percent. Previously was the chief economic advisory body of the government for 2017 an increase of 2 percent.

The number of unemployed decreases slightly in 2017 with 15,000 to 560,000 people. That comes to an unemployment rate of 6.2 percent of the workforce, this year is 6.4 percent. “As a result of the broad labor market develops, the reward is not exuberant,” says CPB.

Consumption

Households have to pay more and that drives consumption. Which is expected to grow by 2.1 percent next year and 1.5 percent this year.

Also, the economic recovery in the public finances beneficial. The CPB assumes that the deficit comes this year at 1.6 percent of gross domestic product (GDP) next year to 1 percent. In 2015 that figure was 1.8 percent. The decrease was also due to lower interest payments.

Global

“Global economic growth remains limited, mainly due to growth slowdown in emerging economies.” The planning agency writes. For Europe, the picture is however relatively favorable.

The Netherlands relevant world trade is growing according to the CPB by 3.9 percent in 2016 and 4.8 percent in 2017. A relatively strong increase, especially because Netherlands drives much trade with Europe and the United States.

inflation

Because of the moderate wage costs, a limited increase in selling prices and a drop in import prices, inflation is expected to remain limited this year by 0.1 percent.

The CPB expects next year 0.9 percent. In 2017, higher oil prices provide a slight recovery of inflation.

De Nederlandsche Bank (DNB) Thursday lowered the growth forecast for the economy this year to 1.5 percent. Last December, DNB still predicts a growth rate of 1.7 percent

By:. NU.nl