June 23, 2010

CPBs short-term forecasts June 2010

The Dutch economy is expected to grow by 1¼% in 2010. The projected growth rate for next year is 1¾%.

Main conclusions of CPB’s short-term forecasts June 2010

The Dutch economy is expected to grow by 1¼% in 2010. The projected growth rate for next year is 1¾%.
The formation of a new coalition, budget cuts in many countries and problems in the euro area introduce large uncertainties in the current forecasts.
The estimated average unemployment rate in 2010 is 5¾% of the labour force. In 2011, this rate will be slightly higher, at 6%.
Inflation is expected to rise to 1½% this year and 2% next year. Contractual wage growth in the market sector in those years will be 1% and 1½%.
The government budget deficit will be 6.3% GDP this year. The deficit will decrease to 4.7% GDP in 2011.