Dutch central bank warns of stagnant economic growth
Europe
By
Xinhua
| Dec 19, 2023
The Dutch economy is expected to see hardly any growth this year, with higher unemployment, increased bankruptcies and less household spending, the Dutch central bank DNB said on Monday.
"The economy is growing only very slightly," largely due to much lower world trade and high inflation, said the DNB in its latest economic forecast.
The growth rates are anticipated to be 0.1 percent for this year, 0.3 percent for the upcoming year, and 1 percent by 2025, according to the forecast.
Inflation in the Netherlands, which is 4.1 percent this year, is expected to fall to 2.9 percent next year and further to 2.2 percent in 2025, the central bank said, attributing the falling inflation mainly to lower energy prices, a further cooling of the economy and the decline in world trade.
The government's budget deficit will remain limited to 0.9 percent of gross domestic product (GDP) this year. But the bank said the situation will deteriorate rapidly in the coming years, partly because more interest has to be paid on government debt. The deficit will then rise towards the European Union's limit of 3 percent.
READ MORE
Experts call on farmers to grow drought resilient crops
Regulation of fintech must promote stability and innovation
Ongoing labour unrests are early signs of an economy that's about to collapse
Trailers and weighbridges: The untold story
KTDA moves to restore order in tea bonus declarations
Madagascar tycoon to buy Zuku parent firm Wananchi Group
How container cash deposits are creating a problem for Kenyan traders
Gold rush: How illegal gallbladder trade threatens Lake Victoria fishers
Real estate posts high productivity as challenges hit wholesale, retail sectors
"If economic conditions abroad deteriorate, including due to increasing uncertainty and geopolitical tensions, the Netherlands as a trading country will be hit hard," the bank said, adding that in a worse scenario, the Dutch economy could contract 0.4 percent in 2024.
- ODM criticises Gachagua over remarks on President Ruto
- Court rules Meta can be sued over moderator sackings
- I can't be impeached without Ruto's approval, says Gachagua